(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
(If “Yes” is marked, indicated below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82: .)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE
SIX MONTHS ENDED JUNE 30, 2016 and 2015
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
(Reviewed, Not Audited)
Taiwan Semiconductor Manufacturing Company Limited (TSMC), a Republic of China
(R.O.C.) corporation, was incorporated on February 21, 1987. TSMC is a dedicated foundry in the semiconductor industry which engages mainly in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and
other semiconductor devices and the manufacturing of masks.
On September 5, 1994, TSMC’s shares were listed on the Taiwan Stock
Exchange (TWSE). On October 8, 1997, TSMC listed some of its shares of stock on the New York Stock Exchange (NYSE) in the form of American Depositary Shares (ADSs).
The address of its registered office and principal place of business is No. 8, Li-Hsin Rd. 6, Hsinchu Science Park, Taiwan. The principal
operating activities and operating segments information of TSMC and its subsidiaries (collectively as the “Company”) are described in Notes 4 and 38.
|
2.
|
THE AUTHORIZATION OF FINANCIAL STATEMENTS
|
The accompanying consolidated financial
statements were reported to the Board of Directors and issued on August 2, 2016.
|
3.
|
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS
|
As of the
date that the accompanying consolidated financial statements were issued, the Company has not applied the following International Financial Reporting Standards (IFRS), International Accounting Standards (IASs), Interpretations of International
Financial Reporting Standards, and Interpretations of IASs issued by the International Accounting Standards Board (IASB) (collectively, “IFRSs”).
|
|
a.
|
The IFRSs in issue and endorsed by Financial Supervisory Commission (FSC) with effective date starting 2017
|
On July 18, 2016, according to Rule No. 1050026834 issued by the FSC, the following IFRSs endorsed by the FSC should be adopted by the Company
starting 2017.
|
|
|
|
|
New, Revised or Amended Standards and Interpretations
|
|
Effective Date Issued
by IASB (Note 1)
|
|
|
|
|
Annual Improvements to IFRSs 2010 - 2012 Cycle
|
|
July 1, 2014 or transactions on or after July 1,
2014
|
|
Annual Improvements to IFRSs 2011 - 2013 Cycle
|
|
July 1, 2014
|
|
Annual Improvements to IFRSs 2012 - 2014 Cycle
|
|
January 1, 2016 (Note 2)
|
|
Amendments to IFRS 10, IFRS 12 and IAS 28 Investment Entities: Applying the Consolidation
Exception
|
|
January 1, 2016
|
(Continued)
- 8 -
|
|
|
|
|
New, Revised or Amended Standards and Interpretations
|
|
Effective Date Issued
by IASB (Note 1)
|
|
|
|
|
Amendment to IFRS 11 Accounting for Acquisitions of Interests in Joint Operations
|
|
January 1, 2016
|
|
Amendment to IAS 1 Disclosure Initiative
|
|
January 1, 2016
|
|
Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation and
Amortization
|
|
January 1, 2016
|
|
Amendment to IAS 19 Defined Benefit Plans: Employee Contributions
|
|
July 1, 2014
|
|
Amendment to IAS 27 Equity Method in Separate Financial Statements
|
|
January 1, 2016
|
|
Amendment to IAS 36 Recoverable Amount Disclosures for Non-Financial Assets
|
|
January 1, 2014
|
|
Amendment to IAS 39 Novation of Derivatives and Continuation of Hedge Accounting
|
|
January 1, 2014
|
(Concluded)
|
|
Note 1:
|
The aforementioned new, revised or amended standards or interpretations are effective after fiscal year beginning on or after the effective dates, unless specified otherwise.
|
|
|
Note 2:
|
The amendment to IFRS 5 is applied prospectively to changes in a method of disposal that occur in annual periods beginning on or after January 1, 2016; the remaining amendments are effective for annual periods beginning
on or after January 1, 2016.
|
Except for the following items, the Company believes that the adoption of aforementioned IFRSs
with effective date starting 2017 will not have a significant effect on the Company’s consolidated financial statements:
|
|
1)
|
Amendments to IAS 36, “Recoverable Amount Disclosures for Non-Financial Assets”
|
The
amendments to IAS 36 clarify that the Company is required to disclose the recoverable amount of an asset or a cash-generating unit only when an impairment loss on the asset has been recognized or reversed during the period. Furthermore, if the
recoverable amount for which impairment loss has been recognized or reversed is fair value less costs of disposal, the Company is required to disclose the fair value hierarchy. If the fair value measurements are categorized within Level 2 or
Level 3, the valuation technique and key assumptions used to measure the fair value are disclosed. The discount rate used is disclosed if such fair value less costs of disposal is measured by using present value technique. The Company
expects the aforementioned amendments will result in a broader disclosure of recoverable amount for non-financial assets.
|
|
b.
|
The IFRSs issued by IASB but not endorsed by FSC
|
The Company has not applied the following
IFRSs issued by the IASB but not endorsed by the FSC. As of the date that the consolidated financial statements were issued, the initial adoption to the following standards and interpretations is still subject to the effective date to be
published by the FSC, except for IFRS 15, which is endorsed by the FSC with effective date starting 2018.
|
|
|
|
|
New, Revised or Amended Standards and Interpretations
|
|
Effective Date Issued
by IASB (Note 3)
|
|
|
|
|
Amendment to IFRS 2 Classification and Measurement of Share-based Payment Transactions
|
|
January 1, 2018
|
|
IFRS 9 Financial Instruments
|
|
January 1, 2018
|
|
Amendments to IFRS 9 and IFRS 7 Mandatory Effective Date of IFRS 9 and Transition
Disclosure
|
|
January 1, 2018
|
(Continued)
- 9 -
|
|
|
|
|
New, Revised or Amended Standards and Interpretations
|
|
Effective Date Issued
by IASB (Note 3)
|
|
|
|
|
Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture
|
|
Effective date to be determined by IASB
|
|
IFRS 15 Revenue from Contracts with Customers
|
|
January 1, 2018
|
|
Amendment to IFRS 15 Clarifications to IFRS 15
|
|
January 1, 2018
|
|
IFRS 16 Leases
|
|
January 1, 2019
|
|
Amendment to IAS 7 Disclosure Initiative
|
|
January 1, 2017
|
|
Amendment to IAS 12 Recognition of Deferred Tax Assets for Unrealized Losses
|
|
January 1, 2017
|
(Concluded)
|
|
Note 3:
|
The aforementioned new, revised or amended standards or interpretations are effective after fiscal year beginning on or after the effective dates.
|
Except for the following, the initial application of the above new standards and interpretations has not had any material impact on the
Company’s accounting policies:
|
|
1)
|
IFRS 9, “Financial Instruments”
|
All recognized financial assets currently in the
scope of IAS 39, “Financial Instruments: Recognition and Measurement,” will be subsequently measured at either the amortized cost or the fair value. The classification and measurement requirements in IFRS 9 are stated as follows:
For the debt instruments invested by the Company, if the contractual cash flows that are solely for payments of principal and interest on
the principal amount outstanding, the classification and measurement requirements are stated as follows:
|
|
a)
|
If the objective of the Company’s business model is to hold the financial asset to collect the contractual cash flows, such assets are measured at the amortized cost. Interest revenue should be recognized in
profit or loss by using the effective interest method, continuously assessed for impairment and the impairment loss or reversal of impairment loss should be recognized in profit and loss.
|
|
|
b)
|
If the objective of the Company’s business model is to hold the financial asset both to collect the contractual cash flows and to sell the financial assets, such assets are measured at fair value through other
comprehensive income and are continuously assessed for impairment. Interest revenue should be recognized in profit or loss by using the effective interest method. A gain or loss on a financial asset measured at fair value through other
comprehensive income should be recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses. When such financial asset is derecognized or reclassified, the cumulative gain or loss
previously recognized in other comprehensive income is reclassified from equity to profit or loss.
|
The other financial
assets which do not meet the aforementioned criteria should be measured at the fair value through profit or loss. However, the Company may irrevocably designate an investment in equity instruments that is not held for trading as measured at fair
value through other comprehensive income. All relevant gains and losses shall be recognized in other comprehensive income, except for dividends which are recognized in profit or loss. No subsequent impairment assessment is required, and
the cumulative gain or loss previously recognized in other comprehensive income cannot be reclassified from equity to profit or loss.
IFRS 9 adds a new expected loss impairment model to measure the impairment of financial assets. A loss allowance for expected credit
losses should be recognized on financial assets measured at amortized cost and financial assets mandatorily measured at fair value through other comprehensive income. If the credit risk on a financial instrument has not increased significantly
since initial recognition, the Company should measure the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. If the credit risk on a financial instrument has increased significantly since initial
recognition and is not deemed to be a low credit risk, the Company should measure the loss allowance for that financial instrument at an amount equal to the lifetime expected credit losses. The Company should always measure the loss allowance
at an amount equal to lifetime expected credit losses for trade receivables.
- 10 -
The main change in IFRS 9 is the increase of the eligibility of hedge accounting. It allows
reporters to reflect risk management activities in the financial statements more closely as it provides more opportunities to apply hedge accounting. A fundamental difference to IAS 39 is that IFRS 9 (a) increases the scope of hedged items
eligible for hedge accounting. For example, the risk components of non-financial items may be designated as hedging accounting; (b) revises a new way to account for the gain or loss recognition arising from hedging derivative financial
instruments, which results in a less volatility in profit or loss; and (c) is necessary for there to be an economic relationship between the hedged item and hedging instrument instead of performing the retrospective hedge effectiveness testing.
|
|
2)
|
IFRS 15, “Revenue from Contracts with Customers” and related amendment
|
IFRS 15
establishes principles for recognizing revenue that apply to all contracts with customers, and will supersede IAS 18, “Revenue,” IAS 11, “Construction Contracts,” and a number of revenue-related interpretations.
When applying IFRS 15, the Company shall recognize revenue by applying the following steps:
|
|
•
|
|
Identify the contract with the customer;
|
|
|
•
|
|
Identify the performance obligations in the contract;
|
|
|
•
|
|
Determine the transaction price;
|
|
|
•
|
|
Allocate the transaction price to the performance obligations in the contracts; and
|
|
|
•
|
|
Recognize revenue when the entity satisfies a performance obligation.
|
When IFRS 15 and
related amendment are effective, the Company may elect to apply this Standard either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this Standard recognized at the date of
initial application.
IFRS 16 sets out the accounting standards for leases that will
supersede IAS 17 and a number of related interpretations.
Under IFRS 16, if the Company is a lessee, it shall recognize right-of-use
assets and lease liabilities for all leases on the consolidated balance sheets except for low-value and short-term leases. The Company may elect to apply the accounting method similar to the accounting for operating lease under IAS 17 to the
low-value and short-term leases. On the consolidated statements of comprehensive income, the Company should present the depreciation expense charged on the right-of-use asset separately from interest expense accrued on the lease liability;
interest is computed by using effective interest method. On the consolidated statements of cash flows, cash payments for both the principal and interest portion of the lease liability are classified within financing activities.
When IFRS 16 becomes effective, the Company may elect to apply this Standard either retrospectively to each prior reporting period presented
or retrospectively with the cumulative effect of the initial application of this Standard recognized at the date of initial application.
- 11 -
Except for the aforementioned impact, as of the date that the accompanying consolidated financial
statements were issued, the Company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the other standards or interpretations. The related impact will be disclosed when
the Company completes the evaluation.
|
4.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Except for the following, the accounting
policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2015.
For the convenience of readers, the accompanying consolidated financial statements have been translated into English from the original Chinese
version prepared and used in the R.O.C. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language consolidated financial statements
shall prevail.
Statement of Compliance
The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial
Reports by Securities Issuers and IAS 34, “Interim Financial Reporting,” endorsed by the FSC. The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial
statements prepared under the IFRSs.
Basis of Consolidation
The basis for the consolidated financial statements
The basis for the consolidated financial statements applied in these consolidated financial statements is consistent with those applied in the
consolidated financial statements for the year ended December 31, 2015.
The subsidiaries in the consolidated financial statements
The detail information of the subsidiaries at the end of reporting period was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Establishment
and Operating
Location
|
|
Percentage of Ownership
|
|
|
|
Name of Investor
|
|
Name of Investee
|
|
Main Businesses and Products
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
June 30,
2015
|
|
Note
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
TSMC North America
|
|
Selling and marketing of integrated circuits and semiconductor devices
|
|
San Jose, California, U.S.A.
|
|
100%
|
|
100%
|
|
100%
|
|
—
|
|
|
|
TSMC Japan Limited (TSMC Japan)
|
|
Marketing activities
|
|
Yokohama, Japan
|
|
100%
|
|
100%
|
|
100%
|
|
a)
|
|
|
|
TSMC Partners, Ltd. (TSMC Partners)
|
|
Investing in companies involved in the design, manufacture, and other related business in the
semiconductor industry
|
|
Tortola, British Virgin Islands
|
|
100%
|
|
100%
|
|
100%
|
|
a)
|
|
|
|
TSMC Korea Limited (TSMC Korea)
|
|
Customer service and technical supporting activities
|
|
Seoul, Korea
|
|
100%
|
|
100%
|
|
100%
|
|
a)
|
|
|
|
TSMC Europe B.V. (TSMC Europe)
|
|
Marketing and engineering supporting activities
|
|
Amsterdam, the Netherlands
|
|
100%
|
|
100%
|
|
100%
|
|
a)
|
|
|
|
TSMC Global, Ltd. (TSMC Global)
|
|
Investment activities
|
|
Tortola, British Virgin Islands
|
|
100%
|
|
100%
|
|
100%
|
|
—
|
|
|
|
TSMC China Company Limited (TSMC China)
|
|
Manufacturing and selling of integrated circuits at the order of and pursuant to product design
specifications provided by customers
|
|
Shanghai, China
|
|
100%
|
|
100%
|
|
100%
|
|
—
|
|
|
|
TSMC Nanjing Company Limited (TSMC Nanjing)
|
|
Manufacturing and selling of integrated circuits at the order of and pursuant to product design
specifications provided by customers
|
|
Nanjing, China
|
|
100%
|
|
—
|
|
—
|
|
b)
|
(Continued)
- 12 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Establishment
and Operating
Location
|
|
Percentage of Ownership
|
|
|
|
Name of Investor
|
|
Name of Investee
|
|
Main Businesses and Products
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
June 30,
2015
|
|
Note
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
VentureTech Alliance Fund III, L.P. (VTAF III)
|
|
Investing in new start-up technology companies
|
|
Cayman Islands
|
|
98%
|
|
98%
|
|
98%
|
|
a)
|
|
|
|
VentureTech Alliance Fund II, L.P. (VTAF II)
|
|
Investing in new start-up technology companies
|
|
Cayman Islands
|
|
98%
|
|
98%
|
|
98%
|
|
a)
|
|
|
|
Emerging Alliance Fund, L.P. (Emerging Alliance)
|
|
Investing in new start-up technology companies
|
|
Cayman Islands
|
|
—
|
|
99.5%
|
|
99.5%
|
|
a), c)
|
|
|
|
TSMC Solar Ltd. (TSMC Solar)
|
|
Engaged in researching, developing, designing, manufacturing and selling renewable energy and
saving related technologies and products
|
|
Tai-Chung, Taiwan
|
|
—
|
|
—
|
|
99%
|
|
d)
|
|
|
|
TSMC Guang Neng Investment, Ltd. (TSMC GN)
|
|
Investment activities
|
|
Taipei, Taiwan
|
|
—
|
|
—
|
|
100%
|
|
d)
|
|
|
|
TSMC Solar Europe GmbH
|
|
Selling of solar related products and providing customer service
|
|
Hamburg, Germany
|
|
100%
|
|
100%
|
|
—
|
|
a), d)
|
|
|
|
Chi Cherng Investment Co., Ltd. (Chi Cherng)
|
|
Investment activities
|
|
Taipei, Taiwan
|
|
100%
|
|
100%
|
|
—
|
|
e), f)
|
|
TSMC Partners
|
|
TSMC Design Technology Canada Inc. (TSMC Canada)
|
|
Engineering support activities
|
|
Ontario, Canada
|
|
100%
|
|
100%
|
|
100%
|
|
a)
|
|
|
|
TSMC Technology, Inc. (TSMC Technology)
|
|
Engineering support activities
|
|
Delaware, U.S.A.
|
|
100%
|
|
100%
|
|
100%
|
|
a)
|
|
|
|
TSMC Development, Inc. (TSMC Development)
|
|
Investment activities
|
|
Delaware, U.S.A.
|
|
100%
|
|
100%
|
|
100%
|
|
—
|
|
|
|
InveStar Semiconductor Development Fund, Inc. (ISDF)
|
|
Investing in new start-up technology companies
|
|
Cayman Islands
|
|
97%
|
|
97%
|
|
97%
|
|
a)
|
|
|
|
InveStar Semiconductor Development Fund, Inc. (II) LDC. (ISDF II)
|
|
Investing in new start-up technology companies
|
|
Cayman Islands
|
|
97%
|
|
97%
|
|
97%
|
|
a)
|
|
|
|
VisEra Holding Company (VisEra Holding)
|
|
Investing in companies involved in the design, manufacturing and other related businesses in the
semiconductor industry
|
|
Cayman Islands
|
|
98%
|
|
98%
|
|
49%
|
|
a), e)
|
|
TSMC Development
|
|
WaferTech, LLC (WaferTech)
|
|
Manufacturing, selling, testing and computer-aided designing of integrated circuits and other
semiconductor devices
|
|
Washington, U.S.A.
|
|
100%
|
|
100%
|
|
100%
|
|
—
|
|
VTAF III
|
|
Mutual-Pak Technology Co., Ltd. (Mutual-Pak)
|
|
Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and
researching, developing and testing of RFID
|
|
New Taipei, Taiwan
|
|
58%
|
|
58%
|
|
58%
|
|
—
|
|
|
|
Growth Fund Limited (Growth Fund)
|
|
Investing in new start-up technology companies
|
|
Cayman Islands
|
|
100%
|
|
100%
|
|
100%
|
|
a)
|
|
VTAF III, VTAF II and Emerging Alliance
|
|
VentureTech Alliance Holdings, LLC (VTA Holdings)
|
|
Investing in new start-up technology companies
|
|
Delaware, U.S.A.
|
|
100%
|
|
100%
|
|
100%
|
|
a)
|
|
TSMC Solar
|
|
TSMC Solar North America, Inc. (TSMC Solar NA)
|
|
Selling and marketing of solar related products
|
|
Delaware, U.S.A.
|
|
—
|
|
—
|
|
100%
|
|
a), d)
|
|
|
|
TSMC Solar Europe GmbH
|
|
Selling of solar modules and related products and providing customer service
|
|
Hamburg, Germany
|
|
—
|
|
—
|
|
100%
|
|
a), d)
|
|
VisEra Holding
|
|
VisEra Technologies Company Ltd. (VisEra Tech)
|
|
Engaged in manufacturing electronic spare parts and in researching, developing, designing,
manufacturing, selling, packaging and testing of color filter
|
|
Hsin-Chu, Taiwan
|
|
87%
|
|
87%
|
|
87%
|
|
e)
|
(Concluded)
|
|
Note a:
|
This is an immaterial subsidiary for which the consolidated financial statements are not reviewed by the Company’s independent accountants.
|
|
|
Note b:
|
Under the investment agreement entered into with the municipal government of Nanjing, China on March 28, 2016, the Company will make an investment in Nanjing in the amount of approximately US$3 billion to establish a
wholly-owned subsidiary managing a 300mm wafer fab with the capacity of 20,000 12-inch wafers per month, and a design service center. TSMC Nanjing was established in May 2016.
|
|
|
Note c:
|
Due to the expiration of the investment agreement between Emerging Alliance and TSMC, Emerging Alliance completed the liquidation procedures in April 2016.
|
|
|
Note d:
|
In August 2015, TSMC Solar ceased its manufacturing operations. TSMC Solar and TSMC GN were incorporated into TSMC in December 2015. After the incorporation, TSMC Solar Europe GmbH, the 100% owned subsidiary
of TSMC Solar, is held directly by TSMC and TSMC Solar Europe GmbH has started the liquidation procedures. TSMC Solar NA, the 100% owned subsidiary of TSMC Solar, completed the liquidation procedures in December 2015.
|
|
|
Note e:
|
The Company acquired OmniVision Technologies, Inc.’s (“OVT’s”) 49.1% ownership in VisEra Holding and 100% ownership in Taiwan OmniVision Investment Holding Co. (“OVT Taiwan”) on
November 20, 2015. As a result, the Company has obtained controls of VisEra Holding and OVT Taiwan; therefore the Company has consolidated VisEra Holding, OVT Taiwan and VisEra Tech, held directly by VisEra Holding, since November 20,
2015. Please refer to Note 29.
|
|
|
Note f:
|
OVT Taiwan that originally acquired by the Company was renamed as Chi Cherng in December 2015.
|
Financial Instruments Designated as at Fair Value through Profit or Loss
A financial instrument may be designated as at fair value through profit or loss (FVTPL) upon initial recognition. The
financial instrument forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company’s documented risk management or
investment strategy, and information about the grouping is provided internally on that basis.
- 13 -
Retirement Benefits
Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of
the prior financial year.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax. The interim period income tax expense is accrued
using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the pre-tax income of the interim period.
Insurance Claim
The
Company recognizes insurance claim reimbursement for losses incurred related to disaster damages. Insurance claim reimbursements are recorded, net of any deductible amounts, at the time while there is evidence that the claim reimbursement is
virtually certain to be received.
Government Grants
Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to them and
that the grants will be received.
Government grants whose primary condition is that the Company should purchase, construct or otherwise
acquire non-current assets (mainly including land use right and depreciable assets) are recognized as a deduction from the carrying amount of the related assets and recognized as a reduced depreciation or amortization charge in profit or loss over
the contract period or useful lives of the related assets. Government grants that are receivables as compensation for expenses already incurred are deducted from incurred expenses in the period in which they become receivables.
|
5.
|
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY
|
The same
critical accounting judgments and key sources of estimates and uncertainty have been followed in these consolidated financial statements as were applied in the preparation of the Company’s consolidated financial statements for the year ended
December 31, 2015.
|
6.
|
CASH AND CASH EQUIVALENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Cash and deposits in banks
|
|
$
|
617,660,014
|
|
|
$
|
557,270,910
|
|
|
$
|
522,994,073
|
|
|
Repurchase agreements collateralized by corporate bonds
|
|
|
4,499,288
|
|
|
|
5,132,778
|
|
|
|
4,155,782
|
|
|
Repurchase agreements collateralized by government bonds
|
|
|
200,000
|
|
|
|
285,242
|
|
|
|
546,526
|
|
|
Repurchase agreements collateralized by short-term commercial paper
|
|
|
—
|
|
|
|
—
|
|
|
|
898,859
|
|
|
Commercial paper
|
|
|
—
|
|
|
|
—
|
|
|
|
299,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
622,359,302
|
|
|
$
|
562,688,930
|
|
|
$
|
528,895,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in banks consisted of highly liquid time deposits that were readily convertible to known amounts
of cash and were subject to an insignificant risk of changes in value.
- 14 -
|
7.
|
FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
143,834
|
|
|
$
|
6,026
|
|
|
$
|
31,580
|
|
|
Cross currency swap contracts
|
|
|
62,917
|
|
|
|
—
|
|
|
|
26,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
206,751
|
|
|
|
6,026
|
|
|
|
58,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposit
|
|
|
1,614,156
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,820,907
|
|
|
$
|
6,026
|
|
|
$
|
58,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
160,423
|
|
|
$
|
72,610
|
|
|
$
|
780,721
|
|
|
Cross currency swap contracts
|
|
|
7,408
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
167,831
|
|
|
|
72,610
|
|
|
|
780,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
10,873
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
178,704
|
|
|
$
|
72,610
|
|
|
$
|
780,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company entered into derivative contracts to manage exposures due to fluctuations of foreign exchange
rates. The derivative contracts entered into by the Company did not meet the criteria for hedge accounting. Therefore, the Company did not apply hedge accounting treatment for derivative contracts.
Outstanding forward exchange contracts consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract Amount
|
|
|
|
|
Maturity Date
|
|
(In Thousands)
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Sell NT$/Buy EUR
|
|
July 2016
|
|
|
NT$2,114,352/EUR59,000
|
|
|
Sell NT$/Buy JPY
|
|
July 2016
|
|
|
NT$4,889,373/JPY15,521,040
|
|
|
Sell US$/Buy JPY
|
|
July 2016
|
|
|
US$166,271/JPY16,944,380
|
|
|
Sell US$/Buy RMB
|
|
July 2016 to June 2017
|
|
|
US$233,000/RMB1,538,880
|
|
|
Sell US$/Buy NT$
|
|
July 2016 to August 2016
|
|
|
US$498,000/NT$16,190,246
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Sell US$/Buy JPY
|
|
January 2016
|
|
|
US$128,418/JPY15,449,355
|
|
|
Sell US$/Buy RMB
|
|
January 2016
|
|
|
US$226,000/RMB1,464,472
|
|
|
Sell US$/Buy NT$
|
|
January 2016 to February 2016
|
|
|
US$440,000/NT$14,434,179
|
|
(Continued)
- 15 -
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract Amount
|
|
|
|
|
Maturity Date
|
|
(In Thousands)
|
|
|
|
|
|
|
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Sell EUR/Buy US$
|
|
July 2015
|
|
|
EUR3,400/US$3,834
|
|
|
Sell NT$/Buy US$
|
|
July 2015
|
|
|
NT$1,868,845/US$60,500
|
|
|
Sell US$/Buy EUR
|
|
July 2015
|
|
|
US$10,153/EUR9,079
|
|
|
Sell US$/Buy JPY
|
|
July 2015
|
|
|
US$40,000/JPY4,947,990
|
|
|
Sell US$/Buy NT$
|
|
July 2015 to August 2015
|
|
|
US$2,345,000/NT$72,072,355
|
|
|
Sell US$/Buy RMB
|
|
July 2015
|
|
|
US$90,000/RMB559,832
|
|
(Concluded)
Outstanding cross currency swap contracts consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity Date
|
|
Contract Amount
(In Thousands)
|
|
|
Range of
Interest Rates
Paid
|
|
|
Range of
Interest Rates
Received
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 2016
|
|
|
US$415,000/NT$13,452,895
|
|
|
|
0.66%-0.90%
|
|
|
|
—
|
|
|
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 2015
|
|
|
NT$3,033,613/US$98,500
|
|
|
|
—
|
|
|
|
0.10%
|
|
|
8.
|
AVAILABLE-FOR-SALE FINANCIAL ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Corporate bonds
|
|
$
|
12,525,209
|
|
|
$
|
6,267,768
|
|
|
$
|
—
|
|
|
Agency bonds
|
|
|
6,379,861
|
|
|
|
2,627,367
|
|
|
|
—
|
|
|
Money market funds
|
|
|
6,128,310
|
|
|
|
—
|
|
|
|
383
|
|
|
Corporate issued asset-backed securities
|
|
|
6,029,248
|
|
|
|
3,154,366
|
|
|
|
—
|
|
|
Publicly traded stocks
|
|
|
2,893,386
|
|
|
|
1,371,483
|
|
|
|
14,216,491
|
|
|
Government bonds
|
|
|
2,366,035
|
|
|
|
878,377
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
36,322,049
|
|
|
$
|
14,299,361
|
|
|
$
|
14,216,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.
|
HELD-TO-MATURITY FINANCIAL ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
26,988,011
|
|
|
$
|
8,143,146
|
|
|
$
|
—
|
|
|
Negotiable certificate of deposit
|
|
|
4,842,450
|
|
|
|
4,934,250
|
|
|
|
—
|
|
|
Structured product
|
|
|
2,000,000
|
|
|
|
3,000,000
|
|
|
|
—
|
|
|
Commercial paper
|
|
|
798,708
|
|
|
|
—
|
|
|
|
7,180,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
34,629,169
|
|
|
$
|
16,077,396
|
|
|
$
|
7,180,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion
|
|
$
|
7,362,302
|
|
|
$
|
9,166,523
|
|
|
$
|
7,180,351
|
|
|
Noncurrent portion
|
|
|
27,266,867
|
|
|
|
6,910,873
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
34,629,169
|
|
|
$
|
16,077,396
|
|
|
$
|
7,180,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 16 -
|
10.
|
HEDGING DERIVATIVE FINANCIAL INSTRUMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Financial assets - current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
—
|
|
|
$
|
1,739
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities - current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
4,217
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Stock forward contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
2,625,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,217
|
|
|
$
|
—
|
|
|
$
|
2,625,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company entered into interest rate futures contracts, which are used to hedge against price risk
caused by changes in interest rates in the Company’s investments in fixed income securities.
The outstanding interest rate futures
contracts consisted of the following:
|
|
|
|
|
|
|
Maturity Period
|
|
Contract Amount
(US$ in Thousands)
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
September 2016
|
|
US$
|
10,000
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
March 2016
|
|
US$
|
13,800
|
|
The Company’s investments in publicly traded stocks are exposed to the risk of market price
fluctuations. Accordingly, the Company entered into stock forward contracts to sell shares at a contracted price determined by specific percentage of the spot price on the trade date in a specific future period in order to hedge the fair value
risk caused by changes in equity prices.
The outstanding stock forward contracts consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Contract amount (US$ in thousands)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,575,328
|
|
|
|
|
|
|
|
|
|
|
|
|
(US$
|
340,371
|
)
|
|
11.
|
NOTES AND ACCOUNTS RECEIVABLE, NET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Notes and accounts receivable
|
|
$
|
111,788,384
|
|
|
$
|
85,547,926
|
|
|
$
|
99,479,058
|
|
|
Allowance for doubtful receivables
|
|
|
(488,197
|
)
|
|
|
(488,251
|
)
|
|
|
(486,704
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and accounts receivable, net
|
|
$
|
111,300,187
|
|
|
$
|
85,059,675
|
|
|
$
|
98,992,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 17 -
In principle, the payment term granted to customers is due 30 days from the invoice date or 30
days from the end of the month of when the invoice is issued. The allowance for doubtful receivables is assessed by reference to the collectability of receivables by performing the account aging analysis, historical experience and current
financial condition of customers.
Except for those impaired, for the rest of the notes and accounts receivable, the account aging analysis
at the end of the reporting period is summarized in the following table. Notes and accounts receivable include amounts that are past due but for which the Company has not recognized a specific allowance for doubtful receivables after the
assessment since there has not been a significant change in the credit quality of its customers and the amounts are still considered recoverable.
Aging analysis of notes and accounts receivable, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Neither past due nor impaired
|
|
$
|
97,225,328
|
|
|
$
|
71,482,666
|
|
|
$
|
84,924,664
|
|
|
Past due but not impaired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due within 30 days
|
|
|
9,190,367
|
|
|
|
13,577,009
|
|
|
|
12,393,941
|
|
|
Past due 31-60 days
|
|
|
1,901,629
|
|
|
|
—
|
|
|
|
1,466,102
|
|
|
Past due 61-120 days
|
|
|
2,982,863
|
|
|
|
—
|
|
|
|
207,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
111,300,187
|
|
|
$
|
85,059,675
|
|
|
$
|
98,992,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Movements of the allowance for doubtful receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually
Assessed for
Impairment
|
|
|
Collectively
Assessed for
Impairment
|
|
|
Total
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
10,241
|
|
|
$
|
478,010
|
|
|
$
|
488,251
|
|
|
Effect of exchange rate changes
|
|
|
—
|
|
|
|
(54
|
)
|
|
|
(54
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2016
|
|
$
|
10,241
|
|
|
$
|
477,956
|
|
|
$
|
488,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2015
|
|
$
|
8,093
|
|
|
$
|
478,637
|
|
|
$
|
486,730
|
|
|
Provision
|
|
|
10,861
|
|
|
|
597
|
|
|
|
11,458
|
|
|
Reversal
|
|
|
—
|
|
|
|
(11,383
|
)
|
|
|
(11,383
|
)
|
|
Effect of exchange rate changes
|
|
|
—
|
|
|
|
(101
|
)
|
|
|
(101
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2015
|
|
$
|
18,954
|
|
|
$
|
467,750
|
|
|
$
|
486,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aging analysis of accounts receivable that is individually determined as impaired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Not past due
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,984
|
|
|
Past due 1-30 days
|
|
|
—
|
|
|
|
—
|
|
|
|
4,387
|
|
|
Past due 31-60 days
|
|
|
—
|
|
|
|
—
|
|
|
|
1,656
|
|
|
Past due over 121 days
|
|
|
10,241
|
|
|
|
10,241
|
|
|
|
7,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,241
|
|
|
$
|
10,241
|
|
|
$
|
18,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 18 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
Finished goods
|
|
|
|
|
|
$
|
4,943,938
|
|
|
$
|
7,974,902
|
|
|
$
|
14,418,570
|
|
|
Work in process
|
|
|
|
|
|
|
50,604,010
|
|
|
|
53,632,056
|
|
|
|
45,538,445
|
|
|
Raw materials
|
|
|
|
|
|
|
2,765,102
|
|
|
|
3,038,756
|
|
|
|
4,146,095
|
|
|
Supplies and spare parts
|
|
|
|
|
|
|
2,392,764
|
|
|
|
2,406,556
|
|
|
|
2,175,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
60,705,814
|
|
|
$
|
67,052,270
|
|
|
$
|
66,278,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-down of inventories to net realizable value (excluding earthquake losses) and reversal of
write-down of inventories resulting from the increase in net realizable value were included in the cost of revenue, which were as follows. Please refer to related earthquake losses in Note 36.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Inventory losses (reversal of write-down of inventories)
|
|
$
|
1,195,805
|
|
|
$
|
(401,637
|
)
|
|
$
|
651,133
|
|
|
$
|
1,367,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.
|
FINANCIAL ASSETS CARRIED AT COST
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
Non-publicly traded stocks
|
|
|
|
|
|
$
|
3,176,575
|
|
|
$
|
3,268,100
|
|
|
$
|
1,580,737
|
|
|
Mutual funds
|
|
|
|
|
|
|
890,046
|
|
|
|
722,782
|
|
|
|
277,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,066,621
|
|
|
$
|
3,990,882
|
|
|
$
|
1,858,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since there is a wide range of estimated fair values of the Company’s investments in non-publicly
traded stocks, the Company concludes that the fair value cannot be reliably measured and therefore should be measured at the cost less any impairment.
The common stock of Richwave Technology Corp. was listed on the TWSE in November 2015. Thus, the Company reclassified the aforementioned
investment from financial assets carried at cost to available-for-sale financial assets.
|
14.
|
INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
|
Investments accounted for using the
equity method consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
Associates
|
|
|
|
|
|
$
|
22,064,632
|
|
|
$
|
24,091,828
|
|
|
$
|
22,446,195
|
|
|
Joint venture
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,469,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
22,064,632
|
|
|
$
|
24,091,828
|
|
|
$
|
25,915,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 19 -
|
|
a.
|
Investments in associates
|
Associates consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Place of
|
|
Carrying Amount
|
|
|
% of Ownership and Voting
Rights Held by the Company
|
|
|
Name of Associate
|
|
Principal Activities
|
|
Incorporation
and Operation
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)
|
|
Fabrication and supply of integrated circuits
|
|
Singapore
|
|
$
|
10,154,793
|
|
|
$
|
9,511,515
|
|
|
$
|
7,831,408
|
|
|
|
39
|
%
|
|
|
39
|
%
|
|
|
39
|
%
|
|
Vanguard International Semiconductor Corporation (VIS)
|
|
Research, design, development, manufacture, packaging, testing and sale of memory integrated
circuits, LSI, VLSI and related parts
|
|
Hsinchu, Taiwan
|
|
|
8,068,620
|
|
|
|
8,446,054
|
|
|
|
8,196,482
|
|
|
|
28
|
%
|
|
|
28
|
%
|
|
|
28
|
%
|
|
Xintec Inc. (Xintec)
|
|
Wafer level chip size packaging service
|
|
Taoyuan, Taiwan
|
|
|
2,777,336
|
|
|
|
2,928,362
|
|
|
|
2,250,809
|
|
|
|
41
|
%
|
|
|
41
|
%
|
|
|
35
|
%
|
|
Global Unichip Corporation (GUC)
|
|
Researching, developing, manufacturing, testing and marketing of integrated circuits
|
|
Hsinchu, Taiwan
|
|
|
1,063,883
|
|
|
|
1,152,335
|
|
|
|
1,013,265
|
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
35
|
%
|
|
Motech Industries, Inc. (Motech)
|
|
Manufacturing and sales of solar cells, crystalline silicon solar cell, and test and measurement
instruments and design and construction of solar power systems
|
|
New Taipei, Taiwan
|
|
|
—
|
|
|
|
2,053,562
|
|
|
|
3,154,231
|
|
|
|
—
|
|
|
|
12
|
%
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
22,064,632
|
|
|
$
|
24,091,828
|
|
|
$
|
22,446,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starting June 2016, the Company has no longer served as Motech’s board of director. As a
result, the Company exercises no significant influence over Motech. Therefore, Motech is no longer accounted for using the equity method. Further, such investment was reclassified to available-for-sale financial assets and the Company
recognized a disposal loss of NT$259,960 thousand.
In the fourth quarter of 2015, the Company sold 29,160 thousand common shares of Motech
and recognized a disposal gain of NT$202,384 thousand. After the sale, the Company’s percentage of ownership over Motech decreased to 12.0%. Motech continued to be accounted for using equity method as the Company still retained
significant influence over Motech.
The Company acquired OVT’s 49.1% ownership in VisEra Holding on November 20, 2015. As a
result, the Company has obtained control of VisEra Holding and consolidated VisEra Holding since November 20, 2015. The Company included the Xintec shares held by VisEra Holding and total percentage of ownership over Xintec increased to 41.4%.
In the second quarter of 2015, the Company sold 82,000 thousand common shares of VIS and recognized a disposal gain of NT$2,263,539
thousand. After the sale, the Company owned approximately 28.3% of the equity interest in VIS.
The market prices of the investments
accounted for using the equity method in publicly traded stocks calculated by the closing price at the end of the reporting period are summarized as follow. The closing price represents the quoted price in active markets, the level 1 fair value
measurement.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of Associate
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
VIS
|
|
$
|
24,511,000
|
|
|
$
|
19,868,766
|
|
|
$
|
22,932,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GUC
|
|
$
|
3,417,551
|
|
|
$
|
3,081,399
|
|
|
$
|
3,571,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xintec
|
|
$
|
2,325,793
|
|
|
$
|
3,605,534
|
|
|
$
|
4,082,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motech
|
|
|
|
|
|
$
|
2,636,054
|
|
|
$
|
3,201,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 20 -
|
|
b.
|
Investments in joint venture
|
Joint venture consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Place of
|
|
Carrying Amount
|
|
|
% of Ownership and Voting
Rights Held by the Company
|
|
Name of Joint Venture
|
|
Principal Activities
|
|
Incorporation
and Operation
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
|
|
|
VisEra Holding
|
|
Investing in companies involved in the design, manufacturing and other related
businesses in the semiconductor industry
|
|
Cayman Islands
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,469,013
|
|
|
—
|
|
—
|
|
49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company acquired OVT’s 49.1% ownership in VisEra Holding on November 20, 2015. As a result, the
Company has obtained control of VisEra Holding and consolidated VisEra Holding since November 20, 2015. Please refer to Note 29 for related disclosures.
|
15.
|
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and Land
Improvements
|
|
|
Buildings
|
|
|
Machinery and
Equipment
|
|
|
Office Equipment
|
|
|
Assets under
Finance Leases
|
|
|
Equipment under
Installation and
Construction in
Progress
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
4,067,391
|
|
|
$
|
296,801,864
|
|
|
$
|
1,893,489,604
|
|
|
$
|
30,700,049
|
|
|
$
|
7,113
|
|
|
$
|
192,111,548
|
|
|
$
|
2,417,177,569
|
|
|
Additions
|
|
|
—
|
|
|
|
5,544,359
|
|
|
|
117,986,695
|
|
|
|
3,012,979
|
|
|
|
—
|
|
|
|
5,870,440
|
|
|
|
132,414,473
|
|
|
Disposals or retirements
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,828,533
|
)
|
|
|
(316,251
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,144,784
|
)
|
|
Reclassification
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,113
|
|
|
|
(7,113
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Effect of exchange rate changes
|
|
|
(15,914
|
)
|
|
|
(777,818
|
)
|
|
|
(2,435,252
|
)
|
|
|
(44,228
|
)
|
|
|
—
|
|
|
|
(19,513
|
)
|
|
|
(3,292,725
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2016
|
|
$
|
4,051,477
|
|
|
$
|
301,568,405
|
|
|
$
|
2,007,212,514
|
|
|
$
|
33,359,662
|
|
|
$
|
—
|
|
|
$
|
197,962,475
|
|
|
$
|
2,544,154,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
506,185
|
|
|
$
|
157,910,155
|
|
|
$
|
1,385,857,655
|
|
|
$
|
19,426,069
|
|
|
$
|
7,113
|
|
|
$
|
—
|
|
|
$
|
1,563,707,177
|
|
|
Additions
|
|
|
14,949
|
|
|
|
8,772,080
|
|
|
|
98,462,355
|
|
|
|
2,103,508
|
|
|
|
—
|
|
|
|
—
|
|
|
|
109,352,892
|
|
|
Disposals or retirements
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,808,905
|
)
|
|
|
(316,190
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,125,095
|
)
|
|
Reclassification
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,113
|
|
|
|
(7,113
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Effect of exchange rate changes
|
|
|
(9,643
|
)
|
|
|
(575,262
|
)
|
|
|
(2,034,628
|
)
|
|
|
(31,113
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,650,646
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2016
|
|
$
|
511,491
|
|
|
$
|
166,106,973
|
|
|
$
|
1,480,476,477
|
|
|
$
|
21,189,387
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,668,284,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at January 1, 2016
|
|
$
|
3,561,206
|
|
|
$
|
138,891,709
|
|
|
$
|
507,631,949
|
|
|
$
|
11,273,980
|
|
|
$
|
—
|
|
|
$
|
192,111,548
|
|
|
$
|
853,470,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at June 30, 2016
|
|
$
|
3,539,986
|
|
|
$
|
135,461,432
|
|
|
$
|
526,736,037
|
|
|
$
|
12,170,275
|
|
|
$
|
—
|
|
|
$
|
197,962,475
|
|
|
$
|
875,870,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2015
|
|
$
|
4,036,785
|
|
|
$
|
269,163,850
|
|
|
$
|
1,754,170,227
|
|
|
$
|
27,960,835
|
|
|
$
|
841,154
|
|
|
$
|
109,334,736
|
|
|
$
|
2,165,507,587
|
|
|
Additions
|
|
|
—
|
|
|
|
4,968,013
|
|
|
|
77,365,235
|
|
|
|
1,628,622
|
|
|
|
—
|
|
|
|
36,568,389
|
|
|
|
120,530,259
|
|
|
Disposals or retirements
|
|
|
—
|
|
|
|
—
|
|
|
|
(949,684
|
)
|
|
|
(709,966
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,659,650
|
)
|
|
Effect of exchange rate changes
|
|
|
(16,849
|
)
|
|
|
(460,203
|
)
|
|
|
(1,096,526
|
)
|
|
|
(58,461
|
)
|
|
|
(16,785
|
)
|
|
|
(69,523
|
)
|
|
|
(1,718,347
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2015
|
|
$
|
4,019,936
|
|
|
$
|
273,671,660
|
|
|
$
|
1,829,489,252
|
|
|
$
|
28,821,030
|
|
|
$
|
824,369
|
|
|
$
|
145,833,602
|
|
|
$
|
2,282,659,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2015
|
|
$
|
459,140
|
|
|
$
|
141,245,913
|
|
|
$
|
1,188,388,402
|
|
|
$
|
16,767,934
|
|
|
$
|
447,397
|
|
|
$
|
—
|
|
|
$
|
1,347,308,786
|
|
|
Additions
|
|
|
14,224
|
|
|
|
7,833,137
|
|
|
|
98,831,428
|
|
|
|
1,844,552
|
|
|
|
21,455
|
|
|
|
—
|
|
|
|
108,544,796
|
|
|
Disposals or retirements
|
|
|
—
|
|
|
|
—
|
|
|
|
(912,589
|
)
|
|
|
(666,231
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,578,820
|
)
|
|
Impairment
|
|
|
—
|
|
|
|
—
|
|
|
|
31,305
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31,305
|
|
|
Effect of exchange rate changes
|
|
|
(9,433
|
)
|
|
|
(325,663
|
)
|
|
|
(957,574
|
)
|
|
|
(47,778
|
)
|
|
|
(8,946
|
)
|
|
|
—
|
|
|
|
(1,349,394
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2015
|
|
$
|
463,931
|
|
|
$
|
148,753,387
|
|
|
$
|
1,285,380,972
|
|
|
$
|
17,898,477
|
|
|
$
|
459,906
|
|
|
$
|
—
|
|
|
$
|
1,452,956,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at June 30, 2015
|
|
$
|
3,556,005
|
|
|
$
|
124,918,273
|
|
|
$
|
544,108,280
|
|
|
$
|
10,922,553
|
|
|
$
|
364,463
|
|
|
$
|
145,833,602
|
|
|
$
|
829,703,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 21 -
The significant part of the Company’s buildings includes main plants, mechanical and
electrical power equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20 years, 10 years and 10 years, respectively.
For the year ended December 31, 2015, the Company recognized an impairment loss of NT$259,568 thousand under foundry segment since the carrying
amount of some of property, plant and equipment is expected to be unrecoverable. Such impairment loss was included in other operating income and expenses for the year ended December 31, 2015.
In August 2015, TSMC Solar ceased its manufacturing operations. In the third quarter of 2015, the Company recognized an impairment loss of
NT$2,286,016 thousand since the carrying amounts of some of machinery and equipment, office equipment and mechanical and electrical power equipment were expected to be unrecoverable. Such impairment loss was included in other operating income
and expenses for the year ended December 31, 2015.
The Company had a building lease agreement with leasing terms from December 2003 to
November 2018 and such lease was accounted for as a finance lease. In August 2015, the lease was determined to be an operating lease due to a modification on lease conditions; as such, the Company recognized a gain of NT$430,041 thousand from
the modification. Such gain was included in other operating income and expenses for the year ended December 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
Technology
License Fees
|
|
|
Software and
System Design
Costs
|
|
|
Patent and
Others
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
6,104,784
|
|
|
$
|
8,454,304
|
|
|
$
|
19,474,428
|
|
|
$
|
4,879,026
|
|
|
$
|
38,912,542
|
|
|
Additions
|
|
|
—
|
|
|
|
751,269
|
|
|
|
745,416
|
|
|
|
362,770
|
|
|
|
1,859,455
|
|
|
Retirements
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,800
|
)
|
|
|
—
|
|
|
|
(1,800
|
)
|
|
Effect of exchange rate changes
|
|
|
(84,410
|
)
|
|
|
2,910
|
|
|
|
(5,961
|
)
|
|
|
(6,179
|
)
|
|
|
(93,640
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2016
|
|
$
|
6,020,374
|
|
|
$
|
9,208,483
|
|
|
$
|
20,212,083
|
|
|
$
|
5,235,617
|
|
|
$
|
40,676,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
—
|
|
|
$
|
4,779,388
|
|
|
$
|
16,431,666
|
|
|
$
|
3,635,608
|
|
|
$
|
24,846,662
|
|
|
Additions
|
|
|
—
|
|
|
|
651,638
|
|
|
|
791,025
|
|
|
|
326,494
|
|
|
|
1,769,157
|
|
|
Retirements
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,800
|
)
|
|
|
—
|
|
|
|
(1,800
|
)
|
|
Effect of exchange rate changes
|
|
|
—
|
|
|
|
2,910
|
|
|
|
(5,409
|
)
|
|
|
(1,525
|
)
|
|
|
(4,024
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2016
|
|
$
|
—
|
|
|
$
|
5,433,936
|
|
|
$
|
17,215,482
|
|
|
$
|
3,960,577
|
|
|
$
|
26,609,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at January 1, 2016
|
|
$
|
6,104,784
|
|
|
$
|
3,674,916
|
|
|
$
|
3,042,762
|
|
|
$
|
1,243,418
|
|
|
$
|
14,065,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at June 30, 2016
|
|
$
|
6,020,374
|
|
|
$
|
3,774,547
|
|
|
$
|
2,996,601
|
|
|
$
|
1,275,040
|
|
|
$
|
14,066,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2015
|
|
$
|
5,888,813
|
|
|
$
|
6,350,253
|
|
|
$
|
18,697,098
|
|
|
$
|
4,292,555
|
|
|
$
|
35,228,719
|
|
|
Additions
|
|
|
—
|
|
|
|
540,027
|
|
|
|
202,818
|
|
|
|
311,139
|
|
|
|
1,053,984
|
|
|
Retirements
|
|
|
—
|
|
|
|
—
|
|
|
|
(91,578
|
)
|
|
|
—
|
|
|
|
(91,578
|
)
|
|
Effect of exchange rate changes
|
|
|
(88,279
|
)
|
|
|
(5,354
|
)
|
|
|
(3,165
|
)
|
|
|
(2,802
|
)
|
|
|
(99,600
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2015
|
|
$
|
5,800,534
|
|
|
$
|
6,884,926
|
|
|
$
|
18,805,173
|
|
|
$
|
4,600,892
|
|
|
$
|
36,091,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2015
|
|
$
|
—
|
|
|
$
|
3,778,912
|
|
|
$
|
14,861,146
|
|
|
$
|
3,057,151
|
|
|
$
|
21,697,209
|
|
|
Additions
|
|
|
—
|
|
|
|
445,742
|
|
|
|
830,478
|
|
|
|
280,087
|
|
|
|
1,556,307
|
|
|
Retirements
|
|
|
—
|
|
|
|
—
|
|
|
|
(91,578
|
)
|
|
|
—
|
|
|
|
(91,578
|
)
|
|
Effect of exchange rate changes
|
|
|
—
|
|
|
|
(5,354
|
)
|
|
|
(2,978
|
)
|
|
|
(588
|
)
|
|
|
(8,920
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2015
|
|
$
|
—
|
|
|
$
|
4,219,300
|
|
|
$
|
15,597,068
|
|
|
$
|
3,336,650
|
|
|
$
|
23,153,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at June 30, 2015
|
|
$
|
5,800,534
|
|
|
$
|
2,665,626
|
|
|
$
|
3,208,105
|
|
|
$
|
1,264,242
|
|
|
$
|
12,938,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 22 -
The Company’s goodwill has been tested for impairment at the end of the annual reporting
period and the recoverable amount is determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering the future five-year period, and the Company used annual discount
rate of 8.40% in its test of impairment for December 31, 2015 to reflect the relevant specific risk in the cash-generating unit.
In
August 2015, TSMC Solar ceased its manufacturing operation and the Company recognized an impairment loss of NT$58,514 thousand in the third quarter of 2015 since the carrying amounts of technology license fees, software and system design costs were
expected to be unrecoverable. Such impairment loss was included in other operating income and expenses for the year ended December 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Tax receivable
|
|
$
|
2,064,225
|
|
|
$
|
2,026,509
|
|
|
$
|
1,795,457
|
|
|
Prepaid expenses
|
|
|
1,159,387
|
|
|
|
1,457,044
|
|
|
|
1,171,189
|
|
|
Long-term receivable
|
|
|
358,900
|
|
|
|
360,000
|
|
|
|
347,000
|
|
|
Others
|
|
|
1,227,714
|
|
|
|
1,118,492
|
|
|
|
1,033,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,810,226
|
|
|
$
|
4,962,045
|
|
|
$
|
4,346,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion
|
|
$
|
3,263,678
|
|
|
$
|
3,533,369
|
|
|
$
|
3,028,691
|
|
|
Noncurrent portion
|
|
|
1,546,548
|
|
|
|
1,428,676
|
|
|
|
1,317,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,810,226
|
|
|
$
|
4,962,045
|
|
|
$
|
4,346,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Unsecured loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
$
|
38,739,600
|
|
|
$
|
39,474,000
|
|
|
$
|
5,592,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Original loan content
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ (in thousands)
|
|
$
|
1,200,000
|
|
|
$
|
1,200,000
|
|
|
$
|
180,000
|
|
|
Annual interest rate
|
|
|
0.70%-0.77%
|
|
|
|
0.50%-0.77%
|
|
|
|
0.38%-0.44%
|
|
|
Maturity date
|
|
|
Due in
July 2016
|
|
|
|
Due by
February 2016
|
|
|
|
Due in
July 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Sales returns and allowances
|
|
$
|
9,495,889
|
|
|
$
|
10,163,536
|
|
|
$
|
8,593,075
|
|
|
Warranties
|
|
|
40,241
|
|
|
|
46,304
|
|
|
|
16,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,536,130
|
|
|
$
|
10,209,840
|
|
|
$
|
8,609,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion
|
|
$
|
9,495,889
|
|
|
$
|
10,163,536
|
|
|
$
|
8,593,075
|
|
|
Noncurrent portion (classified under other noncurrent liabilities)
|
|
|
40,241
|
|
|
|
46,304
|
|
|
|
16,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,536,130
|
|
|
$
|
10,209,840
|
|
|
$
|
8,609,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 23 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Returns
and Allowances
|
|
|
Warranties
|
|
|
Total
|
|
|
|
|
|
|
|
Six months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
$
|
10,163,536
|
|
|
$
|
46,304
|
|
|
$
|
10,209,840
|
|
|
Provision (Reversal)
|
|
|
13,433,695
|
|
|
|
(3,878
|
)
|
|
|
13,429,817
|
|
|
Payment
|
|
|
(14,070,519
|
)
|
|
|
(2,185
|
)
|
|
|
(14,072,704
|
)
|
|
Effect of exchange rate changes
|
|
|
(30,823
|
)
|
|
|
—
|
|
|
|
(30,823
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
9,495,889
|
|
|
$
|
40,241
|
|
|
$
|
9,536,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
$
|
10,445,452
|
|
|
$
|
19,828
|
|
|
$
|
10,465,280
|
|
|
Provision (Reversal)
|
|
|
6,353,637
|
|
|
|
6,071
|
|
|
|
6,359,708
|
|
|
Payment
|
|
|
(8,196,055
|
)
|
|
|
(8,399
|
)
|
|
|
(8,204,454
|
)
|
|
Effect of exchange rate changes
|
|
|
(9,959
|
)
|
|
|
(744
|
)
|
|
|
(10,703
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
8,593,075
|
|
|
$
|
16,756
|
|
|
$
|
8,609,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provisions for sales returns and allowances are estimated based on historical experience, management
judgment, and any known factors that would significantly affect the returns and allowances, and are recognized as a reduction of revenue in the same period of the related product sales.
The provision for warranties represents the present value of the Company’s best estimate of the future outflow of the economic benefits
that will be required under the Company’s obligations for warranties. The best estimate has been made on the basis of historical warranty trends of business.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Domestic unsecured bonds
|
|
$
|
166,200,000
|
|
|
$
|
166,200,000
|
|
|
$
|
166,200,000
|
|
|
Overseas unsecured bonds
|
|
|
37,125,450
|
|
|
|
49,342,500
|
|
|
|
46,605,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
203,325,450
|
|
|
|
215,542,500
|
|
|
|
212,805,000
|
|
|
Less: Discounts on bonds payable
|
|
|
(49,239
|
)
|
|
|
(67,306
|
)
|
|
|
(82,394
|
)
|
|
Less: Current portion
|
|
|
(22,000,000
|
)
|
|
|
(23,510,112
|
)
|
|
|
(10,865,822
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
181,276,211
|
|
|
$
|
191,965,082
|
|
|
$
|
201,856,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The major terms of overseas unsecured bonds are as follows:
|
|
|
|
|
|
|
|
|
|
|
Issuance Period
|
|
Total Amount
(US$
in Thousands)
|
|
|
Coupon
Rate
|
|
Repayment and
Interest Payment
|
|
|
|
|
|
|
April 2013 to April 2016
|
|
$
|
350,000
|
|
|
0.95%
|
|
Bullet repayment; interest payable semi-annually
|
|
April 2013 to April 2018
|
|
|
1,150,000
|
|
|
1.625%
|
|
The same as above
|
- 24 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Capacity guarantee
|
|
$
|
24,212,250
|
|
|
$
|
27,549,563
|
|
|
$
|
28,351,375
|
|
|
Others
|
|
|
200,014
|
|
|
|
183,051
|
|
|
|
167,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
24,412,264
|
|
|
$
|
27,732,614
|
|
|
$
|
28,518,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion (classified under accrued expenses and other current liabilities)
|
|
$
|
6,461,850
|
|
|
$
|
6,167,813
|
|
|
$
|
6,602,375
|
|
|
Noncurrent portion
|
|
|
17,950,414
|
|
|
|
21,564,801
|
|
|
|
21,916,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
24,412,264
|
|
|
$
|
27,732,614
|
|
|
$
|
28,518,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Some of guarantee deposits were refunded to customers by offsetting related accounts receivable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Authorized shares (in thousands)
|
|
|
28,050,000
|
|
|
|
28,050,000
|
|
|
|
28,050,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Authorized capital
|
|
$
|
280,500,000
|
|
|
$
|
280,500,000
|
|
|
$
|
280,500,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued and paid shares (in thousands)
|
|
|
25,930,380
|
|
|
|
25,930,380
|
|
|
|
25,930,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued capital
|
|
$
|
259,303,805
|
|
|
$
|
259,303,805
|
|
|
$
|
259,303,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive
dividends.
The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock options.
As of June 30, 2016, 1,072,635 thousand ADSs of TSMC were traded on the NYSE. The number of common shares represented by the ADSs was
5,363,175 thousand shares (one ADS represents five common shares).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Additional paid-in capital
|
|
$
|
24,184,939
|
|
|
$
|
24,184,939
|
|
|
$
|
24,184,939
|
|
|
From merger
|
|
|
22,804,510
|
|
|
|
22,804,510
|
|
|
|
22,804,510
|
|
|
From convertible bonds
|
|
|
8,892,847
|
|
|
|
8,892,847
|
|
|
|
8,892,847
|
|
|
From share of changes in equities of subsidiaries
|
|
|
100,761
|
|
|
|
100,761
|
|
|
|
78,464
|
|
|
From share of changes in equities of associates and joint venture
|
|
|
280,029
|
|
|
|
317,103
|
|
|
|
572,144
|
|
|
Donations
|
|
|
55
|
|
|
|
55
|
|
|
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
56,263,141
|
|
|
$
|
56,300,215
|
|
|
$
|
56,532,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 25 -
Under the Company Act, the capital surplus generated from donations and the excess of the
issuance price over the par value of capital stock (including the stock issued for new capital, mergers and convertible bonds) may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as
cash dividends or stock dividends up to a certain percentage of TSMC’s paid-in capital. The capital surplus from share of changes in equities of subsidiaries as well as associates and joint venture may be used to offset a deficit.
|
|
c.
|
Retained earnings and dividend policy
|
In accordance with the amendments to the Company Act in
May 2015, the recipients of dividends and bonuses are limited to shareholders and do not include employees. The amendments to TSMC’s Articles of Incorporation on profits distribution policy had been approved by TSMC’s shareholders in
its meeting held on June 7, 2016. For policy about the profit sharing bonus to employees, please refer to Note 28.
TSMC’s
amended Articles of Incorporation provide that, when allocating the net profits for each fiscal year, TSMC shall first offset its losses in previous years and then set aside the following items accordingly:
|
|
1)
|
Legal capital reserve at 10% of the profits left over, until the accumulated legal capital reserve equals TSMC’s paid-in capital;
|
|
|
2)
|
Special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge;
|
|
|
3)
|
Any balance left over shall be allocated according to the resolution of the shareholders’ meeting.
|
TSMC’s Articles of Incorporation also provide that profits of TSMC may be distributed by way of cash dividend and/or stock
dividend. However, distribution of profits shall be made preferably by way of cash dividend. Distribution of profits may also be made by way of stock dividend; provided that the ratio for stock dividend shall not exceed 50% of the total
distribution.
Any appropriations of the profits are subject to shareholders’ approval in the following year.
The appropriation for legal capital reserve shall be made until the reserve equals the Company’s paid-in capital. The reserve may be
used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Company incurs no loss.
Pursuant to existing regulations, the Company is required to set aside additional special capital reserve equivalent to the net debit balance
of the other components of stockholders’ equity, such as the accumulated balance of foreign currency translation reserve, unrealized valuation gain/loss from available-for-sale financial assets, gain/loss from changes in fair value of hedging
instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses.
- 26 -
The appropriations of 2015 and 2014 earnings have been approved by TSMC’s shareholders in
its meeting held on June 7, 2016 and on June 9, 2015, respectively. The appropriations and dividends per share were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appropriation of Earnings
|
|
|
Dividends Per Share
(NT$)
|
|
|
|
|
For Fiscal
|
|
|
For Fiscal
|
|
|
For Fiscal
|
|
|
For Fiscal
|
|
|
|
|
Year 2015
|
|
|
Year 2014
|
|
|
Year 2015
|
|
|
Year 2014
|
|
|
|
|
|
|
|
|
Legal capital reserve
|
|
$
|
30,657,384
|
|
|
$
|
26,389,879
|
|
|
|
|
|
|
|
|
|
|
Cash dividends to shareholders
|
|
|
155,582,283
|
|
|
|
116,683,481
|
|
|
$
|
6.0
|
|
|
$
|
4.5
|
|
|
|
|
|
|
|
|
|
|
$
|
186,239,667
|
|
|
$
|
143,073,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under the Integrated Income Tax System that became effective on January 1, 1998, the R.O.C. resident
shareholders are allowed a tax credit for their proportionate share of the income tax paid by TSMC on earnings generated since January 1, 1998.
Changes in others were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
Foreign
Currency
Translation
Reserve
|
|
|
Unrealized
Gain/Loss from
Available-for-
sale Financial
Assets
|
|
|
Cash Flow
Hedges Reserve
|
|
|
Total
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
$
|
11,039,949
|
|
|
$
|
734,771
|
|
|
$
|
(607
|
)
|
|
$
|
11,774,113
|
|
|
Exchange differences arising on translation of foreign operations
|
|
|
(6,981,647
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(6,981,647
|
)
|
|
Other comprehensive income reclassified to profit or loss upon disposal of subsidiaries
|
|
|
36,105
|
|
|
|
—
|
|
|
|
—
|
|
|
|
36,105
|
|
|
Changes in fair value of available-for-sale financial assets
|
|
|
—
|
|
|
|
112,904
|
|
|
|
—
|
|
|
|
112,904
|
|
|
Cumulative gain reclassified to profit or loss upon disposal of available-for-sale financial
assets
|
|
|
—
|
|
|
|
(89,669
|
)
|
|
|
—
|
|
|
|
(89,669
|
)
|
|
Share of other comprehensive income (loss) of associates and joint venture
|
|
|
(8,260
|
)
|
|
|
24,784
|
|
|
|
285
|
|
|
|
16,809
|
|
|
Other comprehensive loss reclassified to profit or loss upon disposal of associates
|
|
|
(4,712
|
)
|
|
|
(3,469
|
)
|
|
|
—
|
|
|
|
(8,181
|
)
|
|
Income tax effect
|
|
|
—
|
|
|
|
27,640
|
|
|
|
—
|
|
|
|
27,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
4,081,435
|
|
|
$
|
806,961
|
|
|
$
|
(322
|
)
|
|
$
|
4,888,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 27 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2015
|
|
|
|
|
Foreign
Currency
Translation
Reserve
|
|
|
Unrealized
Gain/Loss from
Available-for-
sale Financial
Assets
|
|
|
Cash Flow
Hedges Reserve
|
|
|
Total
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
$
|
4,502,113
|
|
|
$
|
21,247,483
|
|
|
$
|
(305
|
)
|
|
$
|
25,749,291
|
|
|
Exchange differences arising on translation of foreign operations
|
|
|
(4,654,336
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,654,336
|
)
|
|
Changes in fair value of available-for-sale financial assets
|
|
|
—
|
|
|
|
(174,880
|
)
|
|
|
—
|
|
|
|
(174,880
|
)
|
|
Cumulative gain reclassified to profit or loss upon disposal of available-for-sale financial
assets
|
|
|
(993,026
|
)
|
|
|
(16,649,252
|
)
|
|
|
—
|
|
|
|
(17,642,278
|
)
|
|
Share of other comprehensive income (loss) of associates and joint venture
|
|
|
43,487
|
|
|
|
544,976
|
|
|
|
(175
|
)
|
|
|
588,288
|
|
|
The proportionate share of other comprehensive income reclassified to profit or loss upon partial
disposal of associates
|
|
|
4,356
|
|
|
|
2,051
|
|
|
|
11
|
|
|
|
6,418
|
|
|
Income tax effect
|
|
|
—
|
|
|
|
(18,104
|
)
|
|
|
—
|
|
|
|
(18,104
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
(1,097,406
|
)
|
|
$
|
4,952,274
|
|
|
$
|
(469
|
)
|
|
$
|
3,854,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The exchange differences arising on translation of foreign operation’s net assets from its
functional currency to TSMC’s presentation currency are recognized directly in other comprehensive income and also accumulated in the foreign currency translation reserve.
Unrealized gain/loss on available-for-sale financial assets represents the cumulative gains or losses arising from the fair value measurement
on available-for-sale financial assets that are recognized in other comprehensive income, excluding the amounts recognized in profit or loss for the effective portion from changes in fair value of the hedging instruments. When those
available-for-sale financial assets have been disposed of or are determined to be impaired subsequently, the related cumulative gains or losses in other comprehensive income are reclassified to profit or loss.
The cash flow hedges reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of the hedging
instruments entered into as cash flow hedges. The cumulative gains or losses arising on changes in fair value of the hedging instruments that are recognized and accumulated in cash flow hedges reserve will be reclassified to profit or loss only when
the hedge transaction affects profit or loss.
- 28 -
The Company did not issue employee stock option plans for the six
months ended June 30, 2016 and 2015. Information about the TSMC’s outstanding employee stock options is described as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Stock Options
(In Thousands)
|
|
|
Weighted-
average
Exercise Price
(NT$)
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
|
|
|
|
|
718
|
|
|
$
|
47.2
|
|
|
Options exercised
|
|
|
|
|
|
|
(718
|
)
|
|
|
47.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance exercisable, end of period
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The numbers of outstanding stock options and exercise prices have been adjusted to reflect the
distribution of earnings by TSMC in accordance with the plans.
The employee stock options have been fully exercised in the second quarter
of 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Net revenue from sale of goods
|
|
$
|
221,667,204
|
|
|
$
|
205,306,861
|
|
|
$
|
425,050,621
|
|
|
$
|
427,206,385
|
|
|
Net revenue from royalties
|
|
|
142,642
|
|
|
|
132,891
|
|
|
|
254,586
|
|
|
|
267,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
221,809,846
|
|
|
$
|
205,439,752
|
|
|
$
|
425,305,207
|
|
|
$
|
427,473,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25.
|
OTHER GAINS AND LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Gain on disposal of financial assets, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
$
|
100,498
|
|
|
$
|
17,639,406
|
|
|
$
|
89,669
|
|
|
$
|
17,642,367
|
|
|
Financial assets carried at cost
|
|
|
5,628
|
|
|
|
28,354
|
|
|
|
20,009
|
|
|
|
70,597
|
|
|
Gain (loss) on disposal of investments accounted for using equity method
|
|
|
(259,960
|
)
|
|
|
2,305,323
|
|
|
|
(259,960
|
)
|
|
|
2,305,323
|
|
|
Other gains
|
|
|
25,210
|
|
|
|
11,240
|
|
|
|
62,638
|
|
|
|
27,409
|
|
|
Net gain (loss) on financial instruments at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
1,297,816
|
|
|
|
243,123
|
|
|
|
2,829,951
|
|
|
|
560,678
|
|
|
Designated as at FVTPL
|
|
|
(70,947
|
)
|
|
|
—
|
|
|
|
(70,947
|
)
|
|
|
—
|
|
(Continued)
- 29 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from hedging instruments
|
|
$
|
(3,678
|
)
|
|
$
|
(5,329,381
|
)
|
|
$
|
(15,548
|
)
|
|
$
|
(737,305
|
)
|
|
Gain arising from changes in fair value of available-for-sale financial assets in hedge effective
portion
|
|
|
4,082
|
|
|
|
4,901,475
|
|
|
|
14,707
|
|
|
|
299,191
|
|
|
Impairment loss of financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets carried at cost
|
|
|
(30,872
|
)
|
|
|
—
|
|
|
|
(30,872
|
)
|
|
|
—
|
|
|
Loss from liquidation of subsidiaries
|
|
|
(36,105
|
)
|
|
|
—
|
|
|
|
(36,105
|
)
|
|
|
—
|
|
|
Other losses
|
|
|
(2,671
|
)
|
|
|
(21,718
|
)
|
|
|
(15,242
|
)
|
|
|
(28,253
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,029,001
|
|
|
$
|
19,777,822
|
|
|
$
|
2,588,300
|
|
|
$
|
20,140,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Concluded)
|
|
a.
|
Income tax expense recognized in profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Current income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax expense recognized in the current period
|
|
$
|
20,823,242
|
|
|
$
|
18,461,370
|
|
|
$
|
29,469,752
|
|
|
$
|
28,865,330
|
|
|
Income tax adjustments on prior years
|
|
|
(1,035,405
|
)
|
|
|
(793,673
|
)
|
|
|
(1,035,405
|
)
|
|
|
(793,673
|
)
|
|
Other income tax adjustments
|
|
|
169,156
|
|
|
|
107,473
|
|
|
|
204,996
|
|
|
|
149,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,956,993
|
|
|
|
17,775,170
|
|
|
|
28,639,343
|
|
|
|
28,221,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax expense (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The origination and reversal of temporary differences
|
|
|
(51,179
|
)
|
|
|
(230,930
|
)
|
|
|
(297,929
|
)
|
|
|
(414,198
|
)
|
|
Investment tax credits and operating loss carryforward
|
|
|
972,298
|
|
|
|
1,174,539
|
|
|
|
—
|
|
|
|
186,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
921,119
|
|
|
|
943,609
|
|
|
|
(297,929
|
)
|
|
|
(227,318
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense recognized in profit or loss
|
|
$
|
20,878,112
|
|
|
$
|
18,718,779
|
|
|
$
|
28,341,414
|
|
|
$
|
27,993,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 30 -
|
|
b.
|
Income tax expense recognized in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Deferred income tax benefit (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related to unrealized gain/loss on available-for-sale financial assets
|
|
$
|
10,200
|
|
|
$
|
(13,311
|
)
|
|
$
|
27,640
|
|
|
$
|
(18,104
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
c.
|
Integrated income tax information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Balance of the Imputation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Account - TSMC
|
|
$
|
90,045,123
|
|
|
$
|
59,973,516
|
|
|
$
|
61,581,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The estimated and actual creditable ratio for distribution of TSMC’s earnings of 2015 and 2014 were
12.56% and 11.13%, respectively; however, effective from January 1, 2015, the creditable ratio for individual shareholders residing in the Republic of China will be half of the original creditable ratio according to the revised Article 66 - 6 of the
Income Tax Law.
The imputation credit allocated to shareholders is based on its balance as of the date of the dividend
distribution. The estimated creditable ratio may change when the actual distribution of the imputation credit is made.
All of
TSMC’s earnings generated prior to December 31, 1997 have been appropriated.
|
|
d.
|
Income tax examination
|
The tax authorities have examined income tax returns of TSMC through
2013. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
$
|
2.80
|
|
|
$
|
3.06
|
|
|
$
|
5.29
|
|
|
$
|
6.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
2.80
|
|
|
$
|
3.06
|
|
|
$
|
5.29
|
|
|
$
|
6.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 31 -
EPS is computed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
(Numerator)
|
|
|
Number of
Shares
(Denominator)
(In Thousands)
|
|
|
EPS (NT$)
|
|
|
|
|
|
|
|
Three months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent
|
|
$
|
72,506,321
|
|
|
|
25,930,380
|
|
|
$
|
2.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent
|
|
$
|
79,417,514
|
|
|
|
25,930,375
|
|
|
$
|
3.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive potential common shares
|
|
|
—
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent (including effect of dilutive potential
common shares)
|
|
$
|
79,417,514
|
|
|
|
25,930,380
|
|
|
$
|
3.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent
|
|
$
|
137,287,814
|
|
|
|
25,930,380
|
|
|
$
|
5.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent
|
|
$
|
158,407,425
|
|
|
|
25,930,194
|
|
|
$
|
6.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive potential common shares
|
|
|
—
|
|
|
|
186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent (including effect of dilutive potential
common shares)
|
|
$
|
158,407,425
|
|
|
|
25,930,380
|
|
|
$
|
6.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 32 -
|
28.
|
ADDITIONAL INFORMATION OF EXPENSES BY NATURE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
a. Depreciation of property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in cost of revenue
|
|
$
|
50,255,557
|
|
|
$
|
50,147,268
|
|
|
$
|
101,084,838
|
|
|
$
|
101,188,982
|
|
|
Recognized in operating expenses
|
|
|
4,140,384
|
|
|
|
3,685,080
|
|
|
|
8,255,414
|
|
|
|
7,343,371
|
|
|
Recognized in other operating income and expenses
|
|
|
6,222
|
|
|
|
6,221
|
|
|
|
12,640
|
|
|
|
12,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
54,402,163
|
|
|
$
|
53,838,569
|
|
|
$
|
109,352,892
|
|
|
$
|
108,544,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
b. Amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in cost of revenue
|
|
$
|
491,251
|
|
|
$
|
404,092
|
|
|
$
|
980,928
|
|
|
$
|
811,842
|
|
|
Recognized in operating expenses
|
|
|
381,574
|
|
|
|
380,446
|
|
|
|
788,229
|
|
|
|
744,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
872,825
|
|
|
$
|
784,538
|
|
|
$
|
1,769,157
|
|
|
$
|
1,556,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
c. Research and development costs expensed as incurred
|
|
$
|
16,903,540
|
|
|
$
|
16,612,213
|
|
|
$
|
32,522,503
|
|
|
$
|
33,393,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
d. Employee benefits expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post-employment benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined contribution plans
|
|
$
|
527,743
|
|
|
$
|
501,747
|
|
|
$
|
1,053,990
|
|
|
$
|
977,573
|
|
|
Defined benefit plans
|
|
|
68,034
|
|
|
|
79,591
|
|
|
|
136,059
|
|
|
|
147,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
595,777
|
|
|
|
581,338
|
|
|
|
1,190,049
|
|
|
|
1,125,292
|
|
|
Other employee benefits
|
|
|
22,753,404
|
|
|
|
22,918,891
|
|
|
|
44,165,653
|
|
|
|
45,163,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23,349,181
|
|
|
$
|
23,500,229
|
|
|
$
|
45,355,702
|
|
|
$
|
46,288,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee benefits expense summarized by function
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in cost of revenue
|
|
$
|
13,811,159
|
|
|
$
|
13,576,089
|
|
|
$
|
26,916,580
|
|
|
$
|
26,870,583
|
|
|
Recognized in operating expenses
|
|
|
9,538,022
|
|
|
|
9,924,140
|
|
|
|
18,439,122
|
|
|
|
19,418,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23,349,181
|
|
|
$
|
23,500,229
|
|
|
$
|
45,355,702
|
|
|
$
|
46,288,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In accordance with the amendments to the Company Act in May 2015 and the amended TSMC’s Articles of
Incorporation approved by TSMC’s shareholders in its meeting held on June 7, 2016, TSMC shall allocate compensation to directors and profit sharing bonus to employees of TSMC not more than 0.3% and not less than 1% of annual profits during the
period, respectively. Prior to the amendments, TSMC’s Articles of Incorporation provided that, when allocating the net profits for each fiscal year, TSMC shall first set aside legal capital reserve and special capital reserve, then set
aside not more than 0.3% of the balance as compensation to directors and not less than 1% as profit sharing bonus to employees, respectively.
- 33 -
TSMC accrued profit sharing bonus to employees based on a percentage of net income before income
tax, profit sharing bonus to employees and compensation to directors during the period, which amounted to NT$4,863,012 thousand and NT$9,207,536 thousand for the three months and six months ended June 30, 2016, respectively. TSMC accrued profit
sharing bonus to employees based on certain percentage of net income during the period, which amounted to NT$5,338,604 thousand and NT$10,621,290 thousand for the three months and six months ended June 30, 2015, respectively. Compensation to
directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate.
TSMC’s profit sharing bonus to employees and compensation to directors in the amounts of NT$20,556,888 thousand and NT$356,186
thousand in cash for 2015, respectively, and profit sharing bonus to employees and compensation to directors in the amounts of NT$17,645,966 thousand and NT$406,854 thousand in cash for 2014, respectively, had been approved by the Board of Directors
and the shareholders in its meetings held on February 2, 2016 and June 9, 2015, respectively. The profit sharing bonus to employees and compensation to directors in cash for 2015 had been reported to TSMC’s shareholders in its meeting held
on June 7, 2016, after the amended TSMC’s Articles of Incorporation had been approved. The aforementioned approved amount has no difference with the one recognized in the consolidated financial statements for the years ended December 31,
2015 and 2014, respectively.
The information about the appropriations of TSMC’s profit sharing bonus to employees and compensation to
directors is available at the Market Observation Post System website.
|
29.
|
CONSOLIDATION OF SUBSIDIARIES
|
Due to a Chinese consortium’s acquisition of OVT,
major shareholders of VisEra Holding and OVT Taiwan, the Company acquired OVT’s 49.1% ownership in VisEra Holding and 100% ownership in OVT Taiwan on November 20, 2015. The related information is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Activity
|
|
Date of Acquisition
|
|
Proportion of
Voting Equity
Interests
Acquired (%)
|
|
|
Consideration
Transferred
|
|
|
|
|
|
|
|
|
VisEra Holding
|
|
Investing in companies involved in the design, manufacturing and other related
businesses in the semiconductor industry
|
|
November 20, 2015
|
|
|
49.1
|
|
|
$
|
3,536,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OVT Taiwan
|
|
Investment activities
|
|
November 20, 2015
|
|
|
100
|
|
|
$
|
394,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
b.
|
Considerations transferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VisEra Holding
|
|
|
OVT Taiwan
|
|
|
|
|
|
|
Cash
|
|
$
|
3,536,119
|
|
|
$
|
394,674
|
|
|
|
|
|
|
|
|
|
|
|
- 34 -
|
|
c.
|
Assets acquired and liabilities assumed at the date of acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VisEra Holding
|
|
|
OVT Taiwan
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
3,858,482
|
|
|
$
|
20,710
|
|
|
Accounts receivable
|
|
|
511,999
|
|
|
|
—
|
|
|
Inventories
|
|
|
59,050
|
|
|
|
—
|
|
|
Other financial assets
|
|
|
706,500
|
|
|
|
373,813
|
|
|
Other current assets
|
|
|
26,441
|
|
|
|
155
|
|
|
Noncurrent assets
|
|
|
|
|
|
|
|
|
|
Investments accounted for using equity method
|
|
|
721,641
|
|
|
|
—
|
|
|
Property, plant and equipment
|
|
|
2,651,209
|
|
|
|
—
|
|
|
Intangible assets
|
|
|
12,111
|
|
|
|
—
|
|
|
Deferred income tax assets
|
|
|
29,943
|
|
|
|
—
|
|
|
Refundable deposits
|
|
|
15,611
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,592,987
|
|
|
|
394,678
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value through profit or loss
|
|
|
975
|
|
|
|
—
|
|
|
Accounts payable
|
|
|
87,480
|
|
|
|
—
|
|
|
Salary and bonus payable
|
|
|
183,090
|
|
|
|
—
|
|
|
Accrued profit sharing bonus to employees and compensation to directors and supervisors
|
|
|
45,819
|
|
|
|
4
|
|
|
Payables to contractors and equipment suppliers
|
|
|
132,305
|
|
|
|
—
|
|
|
Income tax payable
|
|
|
47,860
|
|
|
|
—
|
|
|
Provisions
|
|
|
126,049
|
|
|
|
—
|
|
|
Accrued expenses and other current liabilities
|
|
|
102,851
|
|
|
|
—
|
|
|
Noncurrent liabilities
|
|
|
|
|
|
|
|
|
|
Guarantee deposits
|
|
|
1,279
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
727,708
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
$
|
7,865,279
|
|
|
$
|
394,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
d.
|
Goodwill arising on acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VisEra Holding
|
|
|
|
|
|
Consideration transferred
|
|
$
|
3,536,119
|
|
|
|
|
|
|
Fair value of investments previously owned
|
|
|
3,458,146
|
|
|
|
|
|
|
Less: Fair value of identifiable net assets acquired
|
|
|
(7,865,279
|
)
|
|
|
|
|
|
Noncontrolling interests
|
|
|
923,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill arising on acquisition
|
|
$
|
52,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
e.
|
Net cash outflow on acquisition of subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VisEra Holding
|
|
|
OVT Taiwan
|
|
|
|
|
|
|
Consideration paid in cash
|
|
$
|
3,536,119
|
|
|
$
|
394,674
|
|
|
Less: Cash and cash equivalent balances acquired
|
|
|
(3,858,482
|
)
|
|
|
(20,710
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(322,363
|
)
|
|
$
|
373,964
|
|
|
|
|
|
|
|
|
|
|
|
- 35 -
|
|
f.
|
Impact of acquisitions on the results of the Company
|
The results of VisEra Holding since the
acquisition date included in the consolidated statements of comprehensive income for the year ended December 31, 2015 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
VisEra Holding
|
|
|
|
|
|
Net revenue
|
|
$
|
254,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
16,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Had the business combination of VisEra Holding been in effect on January 1, 2015, the Company’s net
revenue and net income for the year ended December 31, 2015 would have been NT$846,401,819 thousand and NT$306,687,674 thousand, respectively. This pro-forma information is for illustrative purposes only and is not necessarily an indication of
revenue and results of operations of the Company that actually would have been achieved had the acquisition been completed on January 1, 2015, nor is it intended to be a projection of future results. The aforementioned pro-forma net revenue and
net income were calculated based on the fair value of assets acquired and liabilities assumed at the date of acquisition.
|
30.
|
DISPOSAL OF SUBSIDIARY
|
In January 2015, the Board of Directors of TSMC approved a sale
of TSMC SSL common shares of 565,480 thousand held by TSMC and TSMC Guang Neng to Epistar Corporation. The transaction was completed in February 2015.
|
|
a.
|
Consideration received from the disposal
|
|
|
|
|
|
|
|
Total consideration received
|
|
$
|
825,000
|
|
|
Expenditure associated with consideration received
|
|
|
(142,475
|
)
|
|
|
|
|
|
|
|
|
|
|
Net consideration received
|
|
$
|
682,525
|
|
|
|
|
|
|
|
|
|
b.
|
Gain/loss on disposal of subsidiary
|
|
|
|
|
|
|
|
Net consideration received
|
|
$
|
682,525
|
|
|
Net assets disposed of
|
|
|
(725,165
|
)
|
|
Noncontrolling interests
|
|
|
42,640
|
|
|
|
|
|
|
|
|
|
|
|
Gain/loss on disposal of subsidiary
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
c.
|
Net cash inflow arising from disposal of subsidiary
|
|
|
|
|
|
|
|
Net consideration received
|
|
$
|
682,525
|
|
|
Less: Balance of cash and cash equivalents disposed of
|
|
|
81,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
601,047
|
|
|
|
|
|
|
|
- 36 -
|
31.
|
FINANCIAL INSTRUMENTS
|
|
|
a.
|
Categories of financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
$
|
206,751
|
|
|
$
|
6,026
|
|
|
$
|
58,535
|
|
|
Designated as at FVTPL
|
|
|
1,614,156
|
|
|
|
—
|
|
|
|
—
|
|
|
Available-for-sale financial assets (Note)
|
|
|
40,388,670
|
|
|
|
18,290,243
|
|
|
|
16,075,250
|
|
|
Held-to-maturity financial assets
|
|
|
34,629,169
|
|
|
|
16,077,396
|
|
|
|
7,180,351
|
|
|
Derivative financial instruments in designated hedge accounting relationships
|
|
|
—
|
|
|
|
1,739
|
|
|
|
—
|
|
|
Loans and receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
622,359,302
|
|
|
|
562,688,930
|
|
|
|
528,895,107
|
|
|
Notes and accounts receivables (including related parties)
|
|
|
111,724,397
|
|
|
|
85,565,397
|
|
|
|
99,737,061
|
|
|
Other receivables
|
|
|
5,503,244
|
|
|
|
4,790,376
|
|
|
|
12,320,574
|
|
|
Refundable deposits
|
|
|
441,447
|
|
|
|
430,802
|
|
|
|
408,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
816,867,136
|
|
|
$
|
687,850,909
|
|
|
$
|
664,675,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
$
|
167,831
|
|
|
$
|
72,610
|
|
|
$
|
780,721
|
|
|
Designated as at FVTPL
|
|
|
10,873
|
|
|
|
—
|
|
|
|
—
|
|
|
Derivative financial instruments in designated hedge accounting relationships
|
|
|
4,217
|
|
|
|
—
|
|
|
|
2,625,763
|
|
|
Amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
38,739,600
|
|
|
|
39,474,000
|
|
|
|
5,592,600
|
|
|
Accounts payable (including related parties)
|
|
|
23,154,264
|
|
|
|
19,725,274
|
|
|
|
21,100,895
|
|
|
Payables to contractors and equipment suppliers
|
|
|
48,102,264
|
|
|
|
26,012,192
|
|
|
|
43,610,962
|
|
|
Cash dividends payable
|
|
|
155,696,382
|
|
|
|
—
|
|
|
|
116,683,481
|
|
|
Accrued expenses and other current liabilities
|
|
|
20,189,411
|
|
|
|
18,900,123
|
|
|
|
21,890,115
|
|
|
Bonds payable (including long-term liabilities-current portion)
|
|
|
203,276,211
|
|
|
|
215,475,194
|
|
|
|
212,722,606
|
|
|
Long-term bank loans (including long-term liabilities-current portion)
|
|
|
36,300
|
|
|
|
40,000
|
|
|
|
40,000
|
|
|
Other long-term payables (classified under accrued expenses and other current
liabilities)
|
|
|
—
|
|
|
|
18,000
|
|
|
|
18,000
|
|
|
Guarantee deposits (including those classified under accrued expenses and other current
liabilities)
|
|
|
24,412,264
|
|
|
|
27,732,614
|
|
|
|
28,518,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
513,789,617
|
|
|
$
|
347,450,007
|
|
|
$
|
453,584,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
Including financial assets carried at cost.
|
- 37 -
|
|
b.
|
Financial risk management objectives
|
The Company seeks to ensure sufficient cost-efficient
funding readily available when needed. The Company manages its exposure to foreign currency risk, interest rate risk, equity price risk, credit risk and liquidity risk with the objective to reduce the potentially adverse effects the market
uncertainties may have on its financial performance.
The plans for material treasury activities are reviewed by Audit Committees and/or
Board of Directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, Corporate Treasury function must comply with certain treasury procedures that provide guiding principles
for overall financial risk management and segregation of duties.
The Company is exposed to the market risks arising from changes in foreign
exchange rates, interest rates and the prices in equity investments, and utilizes some derivative financial instruments to reduce the related risks.
Foreign currency risk
Most of the Company’s operating activities are denominated in foreign currencies. Consequently, the Company is exposed to foreign currency
risk. To protect against reductions in value and the volatility of future cash flows caused by changes in foreign exchange rates, the Company utilizes derivative financial instruments, including currency forward contracts and cross currency swaps,
to hedge its currency exposure. These instruments help to reduce, but do not eliminate, the impact of foreign currency exchange rate movements.
The Company also holds short-term borrowings in foreign currencies in proportion to its expected future cash flows. This allows
foreign-currency-denominated borrowings to be serviced with expected future cash flows and provides a partial hedge against transaction translation exposure.
The Company’s sensitivity analysis to foreign currency risk mainly focuses on the foreign currency monetary items at the end of the
reporting period. Assuming an unfavorable 10% movement in the levels of foreign exchanges against the New Taiwan dollar, the net income for the six months ended June 30, 2016 and 2015 would have decreased by NT$89,642 thousand and NT$1,618,369
thousand, respectively, after taking into consideration of the hedging contracts and the hedged items.
Interest rate risk
The Company is exposed to interest rate risk arising from borrowing at both fixed and floating interest rates and from fixed income securities.
All of the Company’s long-term bonds have fixed interest rates and are measured at amortized cost. As such, changes in interest rates would not affect the future cash flows. On the other hand, because interest rates of the
Company’s long-term bank loans are floating, changes in interest rates would affect the future cash flows but not the fair value.
Assuming the amount of floating interest rate bank loans at the end of the reporting period had been outstanding for the entire period and all
other variables were held constant, a hypothetical increase in interest rates of 100 basis point (1%) would have resulted in an increase in the interest expense, net of tax, by approximately NT$151 thousand and NT$166 thousand for the six months
ended June 30, 2016 and 2015, respectively.
The Company classified fixed income securities as held-to-maturity and available-for-sale
financial assets. Because held-to-maturity fixed income securities are measured at amortized cost, changes in interest rates would not affect the fair value. On the other hand, available-for-sale fixed income securities are exposed to fair value
fluctuations caused by changes in interest rates. To manage its exposure to the fair value fluctuations, the Company enters into interest rate futures contract to hedge against price risk caused by changes in risk-free interest rates in the
Company’s investments in available-for-sale fixed income securities.
- 38 -
Assuming a hypothetical increase of 100 basis point (1%) in interest rates of available-for-sale
fixed income securities at the end of the reporting period, the net income for the six months ended June 30, 2016 would have been unaffected as they were classified as available-for-sale; however, the other comprehensive income for the six months
ended June 30, 2016 would have decreased by NT$607,921 thousand.
Other price risk
The Company is exposed to equity price risk arising from available-for-sale equity investments. To reduce the equity price risk, the
Company utilized some stock forward contracts to partially hedge its exposure.
Assuming a hypothetical decrease of 5% in equity prices of
the equity investments at the end of the reporting period, the net income for the six months ended June 30, 2016 and 2015 would have been unaffected as they were classified as available-for-sale; however, the other comprehensive income for the six
months ended June 30, 2016 and 2015 would have decreased by NT$328,089 thousand and NT$135,538 thousand, respectively.
|
|
d.
|
Credit risk management
|
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from operating activities, primarily trade receivables, and from investing activities, primarily deposits, fixed-income investments and
other financial instruments with banks. Credit risk is managed separately for business related and financial related exposures. As of the end of the reporting period, the Company’s maximum credit risk exposure is mainly from the
carrying amount of financial assets recognized in the consolidated balance sheet.
Business related credit risk
The Company has considerable trade receivables outstanding with its customers worldwide. A substantial majority of the Company’s
outstanding trade receivables are not covered by collateral or credit insurance. While the Company has procedures to monitor and limit exposure to credit risk on trade receivables, there can be no assurance such procedures will effectively
limit its credit risk and avoid losses. This risk is heightened during periods when economic conditions worsen.
As of June 30, 2016,
December 31, 2015 and June 30, 2015, the Company’s ten largest customers accounted for 69%, 68% and 66% of accounts receivable, respectively. The Company believes the concentration of credit risk is insignificant for the remaining accounts
receivable.
Financial credit risk
The Company regularly monitors and reviews the transaction limit applied to counterparties and adjusts the concentration limit according to
market conditions and the credit standing of the counterparties. The Company mitigates its exposure by selecting counterparties with investment-grade credit ratings.
|
|
e.
|
Liquidity risk management
|
The objective of liquidity risk management is to ensure the Company
has sufficient liquidity to fund its business requirements associated with existing operations over the next 12 months. The Company manages its liquidity risk by maintaining adequate cash.
- 39 -
The table below summarizes the maturity profile of the Company’s financial liabilities based
on contractual undiscounted payments, including principal and interest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Than
1 Year
|
|
|
2-3 Years
|
|
|
4-5 Years
|
|
|
5+ Years
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
$
|
38,743,592
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38,743,592
|
|
|
Accounts payable (including related parties)
|
|
|
23,154,264
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,154,264
|
|
|
Payables to contractors and equipment suppliers
|
|
|
48,102,264
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
48,102,264
|
|
|
Accrued expenses and other current liabilities
|
|
|
20,189,411
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20,189,411
|
|
|
Bonds payable
|
|
|
24,797,738
|
|
|
|
101,437,838
|
|
|
|
62,143,440
|
|
|
|
23,174,836
|
|
|
|
211,553,852
|
|
|
Long-term bank loans
|
|
|
11,040
|
|
|
|
21,056
|
|
|
|
6,353
|
|
|
|
—
|
|
|
|
38,449
|
|
|
Guarantee deposits (including those classified under accrued expenses and other current
liabilities)
|
|
|
6,461,850
|
|
|
|
13,107,964
|
|
|
|
4,842,450
|
|
|
|
—
|
|
|
|
24,412,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
161,460,159
|
|
|
|
114,566,858
|
|
|
|
66,992,243
|
|
|
|
23,174,836
|
|
|
|
366,194,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
35,970,330
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
35,970,330
|
|
|
Inflows
|
|
|
(35,960,606
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(35,960,606
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,724
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swap contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
13,404,146
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,404,146
|
|
|
Inflows
|
|
|
(13,452,895
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(13,452,895
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(48,749
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(48,749
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
161,421,134
|
|
|
$
|
114,566,858
|
|
|
$
|
66,992,243
|
|
|
$
|
23,174,836
|
|
|
$
|
366,155,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
$
|
39,488,957
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39,488,957
|
|
|
Accounts payable (including related parties)
|
|
|
19,725,274
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19,725,274
|
|
|
Payables to contractors and equipment suppliers
|
|
|
26,012,192
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26,012,192
|
|
|
Accrued expenses and other current liabilities
|
|
|
18,900,123
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,900,123
|
|
|
Bonds payable
|
|
|
26,494,990
|
|
|
|
104,462,371
|
|
|
|
68,378,787
|
|
|
|
25,981,316
|
|
|
|
225,317,464
|
|
|
Long-term bank loans
|
|
|
8,800
|
|
|
|
21,540
|
|
|
|
12,741
|
|
|
|
—
|
|
|
|
43,081
|
|
|
Other long-term payables (classified under accrued expenses and other current
liabilities)
|
|
|
18,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,000
|
|
|
Guarantee deposits (including those classified under accrued expenses and other current
liabilities)
|
|
|
6,167,813
|
|
|
|
13,341,051
|
|
|
|
8,223,750
|
|
|
|
—
|
|
|
|
27,732,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
136,816,149
|
|
|
|
117,824,962
|
|
|
|
76,615,278
|
|
|
|
25,981,316
|
|
|
|
357,237,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
- 40 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Than
1 Year
|
|
|
2-3 Years
|
|
|
4-5 Years
|
|
|
5+ Years
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
23,192,477
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,192,477
|
|
|
Inflows
|
|
|
(23,135,579
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(23,135,579
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56,898
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
56,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
136,873,047
|
|
|
$
|
117,824,962
|
|
|
$
|
76,615,278
|
|
|
$
|
25,981,316
|
|
|
$
|
357,294,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
$
|
5,594,309
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,594,309
|
|
|
Accounts payable (including related parties)
|
|
|
21,100,895
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21,100,895
|
|
|
Payables to contractors and equipment suppliers
|
|
|
43,610,962
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
43,610,962
|
|
|
Accrued expenses and other current liabilities
|
|
|
21,890,115
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21,890,115
|
|
|
Bonds payable
|
|
|
13,915,132
|
|
|
|
107,533,065
|
|
|
|
66,178,944
|
|
|
|
36,407,035
|
|
|
|
224,034,176
|
|
|
Long-term bank loans
|
|
|
3,931
|
|
|
|
21,933
|
|
|
|
18,002
|
|
|
|
—
|
|
|
|
43,866
|
|
|
Other long-term payables (classified under accrued expenses and other current
liabilities)
|
|
|
18,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,000
|
|
|
Obligations under finance leases
|
|
|
29,076
|
|
|
|
58,151
|
|
|
|
755,364
|
|
|
|
—
|
|
|
|
842,591
|
|
|
Guarantee deposits (including those classified under accrued expenses and other current
liabilities)
|
|
|
6,602,375
|
|
|
|
12,595,587
|
|
|
|
9,321,000
|
|
|
|
—
|
|
|
|
28,518,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
112,764,795
|
|
|
|
120,208,736
|
|
|
|
76,273,310
|
|
|
|
36,407,035
|
|
|
|
345,653,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
76,898,431
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
76,898,431
|
|
|
Inflows
|
|
|
(76,154,158
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(76,154,158
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
744,273
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
744,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swap contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
3,033,613
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,033,613
|
|
|
Inflows
|
|
|
(3,060,582
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,060,582
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(26,969
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(26,969
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock forward contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
10,575,328
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10,575,328
|
|
|
Inflows
|
|
|
(10,575,328
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(10,575,328
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
113,482,099
|
|
|
$
|
120,208,736
|
|
|
$
|
76,273,310
|
|
|
$
|
36,407,035
|
|
|
$
|
346,371,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Concluded)
|
|
f.
|
Fair value of financial instruments
|
|
|
1)
|
Fair value measurements recognized in the consolidated balance sheets
|
Fair value measurements
are grouped into Levels 1 to 3 based on the degree to which the fair value is observable:
|
|
•
|
|
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
|
|
|
•
|
|
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived
from prices); and
|
|
|
•
|
|
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
|
- 41 -
|
|
2)
|
Fair value of financial instruments that are measured at fair value on a recurring basis
|
Fair value hierarchy
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
Financial assets at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
—
|
|
|
$
|
143,834
|
|
|
$
|
—
|
|
|
$
|
143,834
|
|
|
Cross currency swap contracts
|
|
|
—
|
|
|
|
62,917
|
|
|
|
—
|
|
|
|
62,917
|
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposit
|
|
|
—
|
|
|
|
1,614,156
|
|
|
|
—
|
|
|
|
1,614,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
—
|
|
|
$
|
1,820,907
|
|
|
$
|
—
|
|
|
$
|
1,820,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds
|
|
$
|
12,525,209
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,525,209
|
|
|
Agency bonds
|
|
|
6,379,861
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,379,861
|
|
|
Money market funds
|
|
|
6,128,310
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,128,310
|
|
|
Corporate issued asset-backed securities
|
|
|
—
|
|
|
|
6,029,248
|
|
|
|
—
|
|
|
|
6,029,248
|
|
|
Publicly traded stocks
|
|
|
2,893,386
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,893,386
|
|
|
Government bonds
|
|
|
2,366,035
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,366,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
30,292,801
|
|
|
$
|
6,029,248
|
|
|
$
|
—
|
|
|
$
|
36,322,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
—
|
|
|
$
|
160,423
|
|
|
$
|
—
|
|
|
$
|
160,423
|
|
|
Cross currency swap contracts
|
|
|
—
|
|
|
|
7,408
|
|
|
|
—
|
|
|
|
7,408
|
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
—
|
|
|
|
10,873
|
|
|
|
—
|
|
|
|
10,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
—
|
|
|
$
|
178,704
|
|
|
$
|
—
|
|
|
$
|
178,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
4,217
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
Financial assets at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
—
|
|
|
$
|
6,026
|
|
|
$
|
—
|
|
|
$
|
6,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds
|
|
$
|
6,267,768
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,267,768
|
|
|
Corporate issued asset-backed securities
|
|
|
—
|
|
|
|
3,154,366
|
|
|
|
—
|
|
|
|
3,154,366
|
|
|
Agency bonds
|
|
|
2,627,367
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,627,367
|
|
|
Publicly traded stocks
|
|
|
1,371,483
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,371,483
|
|
|
Government bonds
|
|
|
878,377
|
|
|
|
—
|
|
|
|
—
|
|
|
|
878,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,144,995
|
|
|
$
|
3,154,366
|
|
|
$
|
—
|
|
|
$
|
14,299,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
- 42 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
Hedging derivative financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
1,739
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
—
|
|
|
$
|
72,610
|
|
|
$
|
—
|
|
|
$
|
72,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Concluded)
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
Financial assets at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
—
|
|
|
$
|
31,580
|
|
|
$
|
—
|
|
|
$
|
31,580
|
|
|
Cross currency swap contracts
|
|
|
—
|
|
|
|
26,955
|
|
|
|
—
|
|
|
|
26,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
—
|
|
|
$
|
58,535
|
|
|
$
|
—
|
|
|
$
|
58,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publicly traded stocks
|
|
$
|
14,216,491
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,216,491
|
|
|
Money market funds
|
|
|
383
|
|
|
|
—
|
|
|
|
—
|
|
|
|
383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,216,874
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,216,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
—
|
|
|
$
|
780,721
|
|
|
$
|
—
|
|
|
$
|
780,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock forward contract
|
|
$
|
—
|
|
|
$
|
2,625,763
|
|
|
$
|
—
|
|
|
$
|
2,625,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no transfers between Level 1 and Level 2 for the six months ended June 30, 2016 and 2015,
respectively.
There were no purchases and disposals for assets on Level 3 for the six months ended June 30, 2016 and 2015, respectively.
Valuation techniques and assumptions used in fair value measurement
The fair values of financial assets and financial liabilities are determined as follows:
|
|
•
|
|
The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices (includes interest rate futures
contracts, publicly traded stocks, money market funds, government bonds, agency bonds and corporate bonds).
|
|
|
•
|
|
Forward exchange contracts and cross currency swap contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts; and stock forward
contracts are measured at the difference between the present value of stock forward price discounted based on the applicable yield curve derived from quoted interest rates and the stock spot price. For investments in corporate issued
asset-backed securities and time deposit, the fair value are determined using quoted market prices or the present value of future cash flows based on the observable yield curves.
|
- 43 -
|
|
3)
|
Fair value of financial instruments that are not measured at fair value
|
Except as detailed in
the following table, the Company considers that the carrying amounts of financial instruments that are not measured at fair value recognized in the consolidated financial statements approximate their fair values.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
December 31, 2015
|
|
|
June 30, 2015
|
|
|
|
|
Carrying
Amount
|
|
|
Fair Value
|
|
|
Carrying
Amount
|
|
|
Fair Value
|
|
|
Carrying
Amount
|
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
26,988,011
|
|
|
$
|
27,051,457
|
|
|
$
|
8,143,146
|
|
|
$
|
8,146,756
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Negotiable certificate of deposit
|
|
|
4,842,450
|
|
|
|
4,849,988
|
|
|
|
4,934,250
|
|
|
|
4,945,878
|
|
|
|
—
|
|
|
|
—
|
|
|
Structured product
|
|
|
2,000,000
|
|
|
|
1,997,850
|
|
|
|
3,000,000
|
|
|
|
2,995,731
|
|
|
|
—
|
|
|
|
—
|
|
|
Commercial paper
|
|
|
798,708
|
|
|
|
799,370
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,180,351
|
|
|
|
7,189,249
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable
|
|
|
203,276,211
|
|
|
|
205,939,533
|
|
|
|
215,475,194
|
|
|
|
216,223,736
|
|
|
|
212,722,606
|
|
|
|
213,040,105
|
|
Fair value hierarchy
The table below sets out the balances for the Company’s assets and liabilities that are not measured at fair value but for which the fair
value is disclosed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
27,051,457
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27,051,457
|
|
|
Negotiable certificate of deposit
|
|
|
—
|
|
|
|
4,849,988
|
|
|
|
—
|
|
|
|
4,849,988
|
|
|
Structured product
|
|
|
—
|
|
|
|
1,997,850
|
|
|
|
—
|
|
|
|
1,997,850
|
|
|
Commercial paper
|
|
|
—
|
|
|
|
799,370
|
|
|
|
—
|
|
|
|
799,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
27,051,457
|
|
|
$
|
7,647,208
|
|
|
$
|
—
|
|
|
$
|
34,698,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable
|
|
$
|
205,939,533
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
205,939,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
8,146,756
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,146,756
|
|
|
Negotiable certificate of deposit
|
|
|
—
|
|
|
|
4,945,878
|
|
|
|
—
|
|
|
|
4,945,878
|
|
|
Structured product
|
|
|
—
|
|
|
|
2,995,731
|
|
|
|
—
|
|
|
|
2,995,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,146,756
|
|
|
$
|
7,941,609
|
|
|
$
|
—
|
|
|
$
|
16,088,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable
|
|
$
|
216,223,736
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
216,223,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 44 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
$
|
—
|
|
|
$
|
7,189,249
|
|
|
$
|
—
|
|
|
$
|
7,189,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable
|
|
$
|
213,040,105
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
213,040,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value measurement
For investments in bonds, the fair value is determined using active market prices.
For investments in negotiable certificate of deposit, structured product and commercial paper, the fair value is determined using the present
value of future cash flows based on the observable yield curves.
The fair value of the Company’s bonds payable is determined using
active market prices.
|
32.
|
RELATED PARTY TRANSACTIONS
|
Intercompany balances and transactions between TSMC and its
subsidiaries, which are related parties of TSMC, have been eliminated upon consolidation; therefore those items are not disclosed in this note. The following is a summary of significant transactions between the Company and other related
parties:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Item
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue from sale of goods
|
|
Associates
|
|
$
|
957,496
|
|
|
$
|
1,171,840
|
|
|
$
|
2,562,512
|
|
|
$
|
2,186,502
|
|
|
|
|
Joint venture
|
|
|
—
|
|
|
|
283
|
|
|
|
—
|
|
|
|
667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
957,496
|
|
|
$
|
1,172,123
|
|
|
$
|
2,562,512
|
|
|
$
|
2,187,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue from royalties
|
|
Associates
|
|
$
|
137,376
|
|
|
$
|
130,168
|
|
|
$
|
249,320
|
|
|
$
|
262,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
$
|
2,441,794
|
|
|
$
|
2,974,865
|
|
|
$
|
4,787,039
|
|
|
$
|
5,979,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 45 -
|
|
c.
|
Receivables from related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
Item
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables from related parties
|
|
Associates
|
|
$
|
424,210
|
|
|
$
|
505,722
|
|
|
$
|
744,584
|
|
|
|
|
Joint venture
|
|
|
—
|
|
|
|
—
|
|
|
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
424,210
|
|
|
$
|
505,722
|
|
|
$
|
744,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other receivables from related parties
|
|
Associates
|
|
$
|
1,546,979
|
|
|
$
|
125,018
|
|
|
$
|
3,164,538
|
|
|
|
|
Joint venture
|
|
|
—
|
|
|
|
—
|
|
|
|
400,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,546,979
|
|
|
$
|
125,018
|
|
|
$
|
3,565,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
d.
|
Payables to related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
Item
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
Associates
|
|
$
|
1,037,116
|
|
|
$
|
1,149,988
|
|
|
$
|
1,325,844
|
|
|
|
|
Joint venture
|
|
|
—
|
|
|
|
—
|
|
|
|
1,501
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,037,116
|
|
|
$
|
1,149,988
|
|
|
$
|
1,327,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Item
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing expenses
|
|
Associates
|
|
$
|
387,637
|
|
|
$
|
680,185
|
|
|
$
|
773,810
|
|
|
$
|
1,394,699
|
|
|
|
|
Joint venture
|
|
|
—
|
|
|
|
3,023
|
|
|
|
—
|
|
|
|
5,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
387,637
|
|
|
$
|
683,208
|
|
|
$
|
773,810
|
|
|
$
|
1,400,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses
|
|
Associates
|
|
$
|
27,986
|
|
|
$
|
6,873
|
|
|
$
|
69,078
|
|
|
$
|
25,926
|
|
|
|
|
Joint venture
|
|
|
—
|
|
|
|
888
|
|
|
|
—
|
|
|
|
948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
27,986
|
|
|
$
|
7,761
|
|
|
$
|
69,078
|
|
|
$
|
26,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The sales prices and payment terms to related parties were not significantly different from those of
sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements.
The Company leased machinery and equipment from Xintec and office from VIS, respectively. The lease terms and prices were both determined
in accordance with mutual agreements. The rental expenses were paid to Xintec and VIS quarterly and monthly, respectively; the related expenses were both classified under manufacturing expenses.
The Company deferred the disposal gain/loss derived from sales of property, plant and equipment to related parties (transactions with
associates and joint venture), and then recognized such gain/loss over the depreciable lives of the disposed assets.
- 46 -
|
|
f.
|
Compensation of key management personnel
|
The compensation to directors and other key
management personnel for the three months and six months ended June 30, 2016 and 2015 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Short-term employee benefits
|
|
$
|
477,001
|
|
|
$
|
484,183
|
|
|
$
|
851,777
|
|
|
$
|
970,226
|
|
|
Post-employment benefits
|
|
|
1,073
|
|
|
|
1,037
|
|
|
|
2,111
|
|
|
|
2,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
478,074
|
|
|
$
|
485,220
|
|
|
$
|
853,888
|
|
|
$
|
972,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The compensation to directors and other key management personnel were determined by the Compensation
Committee of TSMC in accordance with the individual performance and the market trends.
The Company provided certificate of deposits recorded in other financial
assets as collateral mainly for litigation and building lease agreements. As of June 30, 2016, December 31, 2015 and June 30, 2015, the aforementioned other financial assets amounted to NT$154,829 thousand, NT$177,229 thousand and NT$269,032
thousand, respectively.
|
34.
|
SIGNIFICANT OPERATING LEASE ARRANGEMENTS
|
The Company leases several parcels of land,
office premises and certain office equipment. These operating leases expire between September 2016 and June 2066 and can be renewed upon expiration.
Future minimum lease payments under the above non-cancellable operating leases are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
June 30,
2015
|
|
|
|
|
|
|
|
Not later than 1 year
|
|
$
|
1,314,854
|
|
|
$
|
1,099,017
|
|
|
$
|
1,005,463
|
|
|
Later than 1 year and not later than 5 years
|
|
|
3,945,083
|
|
|
|
3,635,180
|
|
|
|
3,608,378
|
|
|
Later than 5 years
|
|
|
7,807,962
|
|
|
|
6,921,891
|
|
|
|
7,168,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
13,067,899
|
|
|
$
|
11,656,088
|
|
|
$
|
11,782,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35.
|
SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS
|
Significant contingent
liabilities and unrecognized commitments of the Company as of the end of the reporting period, excluding those disclosed in other notes, were as follows:
|
|
a.
|
Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C. Government or its designee approved by TSMC can use up to 35% of TSMC’s capacity provided TSMC’s
outstanding commitments to its customers are not prejudiced. The term of this agreement is for five years beginning from January 1, 1987 and is automatically renewed for successive periods of five years unless otherwise terminated by either
party with one year prior notice. As of June 30, 2016, the R.O.C. Government did not invoke such right.
|
- 47 -
|
|
b.
|
Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in
Singapore. TSMC’s equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips spun-off its semiconductor subsidiary which was renamed as NXP B.V. Further, TSMC and NXP B.V. purchased all the SSMC shares owned by EDB
Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, TSMC and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. TSMC and NXP B.V. are required, in
the aggregate, to purchase at least 70% of SSMC’s capacity, but TSMC alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a specific
percentage of its capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. There was no default from the aforementioned commitment as of June 30, 2016.
|
|
|
c.
|
In June 2010, Keranos, LLC. filed a complaint in the U.S. District Court for the Eastern District of Texas alleging that TSMC, TSMC North America, and several other leading technology companies infringe three expired
U.S. patents. In response, TSMC, TSMC North America, and several co-defendants in the Texas case filed a lawsuit against Keranos in the U.S. District Court for the Northern District of California in November 2010, seeking a judgment declaring
that they did not infringe the asserted patents, and that those patents were invalid. These two litigations have been consolidated into a single lawsuit in the U.S. District Court for the Eastern District of Texas. In February 2014, the
Court entered a final judgment in favor of TSMC, dismissing all of Keranos’ claims against TSMC with prejudice. Keranos appealed the final judgment to the U.S. Court of Appeals for the Federal Circuit, and in August 2015, the Federal
Circuit remanded the case back to the Texas court for further proceedings. The outcome cannot be determined and the Company cannot make a reliable estimate of the contingent liability at this time.
|
|
|
d.
|
In December 2010, Ziptronix, Inc. filed a complaint in the U.S. District Court for the Northern District of California accusing TSMC, TSMC North America and one other company of infringing several U.S. patents. In
September 2014, the Court granted summary judgment of noninfringement in favor of TSMC and TSMC North America. Ziptronix, Inc. can appeal the Court’s order. In August 2015, Tessera Technologies, Inc. announced it had acquired
Ziptronix. The outcome cannot be determined and the Company cannot make a reliable estimate of the contingent liability at this time.
|
|
|
e.
|
TSMC joined the Customer Co-Investment Program of ASML and entered into the investment agreement in August 2012. The agreement includes an investment of EUR837,816 thousand by TSMC Global to acquire 5% of
ASML’s equity with a lock-up period of 2.5 years. TSMC Global has acquired the aforementioned equity on October 31, 2012. The lock-up period expired on May 1, 2015 and as of October 8, 2015, all ASML shares had been disposed.
|
Both parties also signed the research and development funding agreement whereby TSMC shall provide EUR276,000 thousand to
ASML’s research and development programs from 2013 to 2017. As of June 30, 2016, TSMC has paid EUR197,332 thousand to ASML under the research and development funding agreement.
|
|
f.
|
In March 2014, DSS Technology Management, Inc. (DSS) filed a complaint in the U.S. District Court for the Eastern District of Texas alleging that TSMC, TSMC North America, TSMC Development and several other companies
infringe one U.S. patent. TSMC Development has subsequently been dismissed. In May 2015, the Court entered a final judgment of noninfringement in favor of TSMC and TSMC North America. DSS appealed the final judgment to the U.S. Court
of Appeals for the Federal Circuit (Federal Circuit). In November 2015, the Patent Trial and Appeal Board (PTAB) determined after concluding an Inter Partes Review (IPR) that the patent claims asserted by DSS in the District Court litigation
are unpatentable. DSS appealed the PTAB’s decision to the Federal Circuit in January 2016. In March 2016, the District Court’s judgment of noninfringement was affirmed by the Federal Circuit. In April 2016, the District
Court litigation between the parties and the related Federal Circuit appeal were dismissed, and the appeal proceeding of the PTAB’s decision is also over as to TSMC.
|
|
|
g.
|
Amounts available under unused letters of credit as of June 30, 2016, December 31, 2015 and June 30, 2015 were NT$122,675 thousand, NT$144,738 thousand and NT$198,848 thousand, respectively.
|
- 48 -
|
36.
|
SIGNIFICANT LOSS FROM DISASTER
|
On February 6, 2016, an earthquake struck
Taiwan. The resulting damage was mostly to inventories and equipment. In the first quarter of 2016, the Company recognized related earthquake losses of NT$2,289,128 thousand, net of insurance claim. Such losses were primarily included
in cost of revenue for the three months ended March 31, 2016.
|
37.
|
EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND LIABILITIES
|
The
following information was summarized according to the foreign currencies other than the functional currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The
significant financial assets and liabilities denominated in foreign currencies were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
Currencies
(In Thousands)
|
|
|
Exchange Rate
(Note 1)
|
|
|
Carrying
Amount
(In Thousands)
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
$
|
4,531,293
|
|
|
|
32.283
|
|
|
$
|
146,283,737
|
|
|
EUR
|
|
|
20,955
|
|
|
|
35.89
|
|
|
|
752,085
|
|
|
JPY
|
|
|
21,406,874
|
|
|
|
0.3134
|
|
|
|
6,708,914
|
|
|
Non-monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HKD
|
|
|
130,849
|
|
|
|
4.16
|
|
|
|
544,333
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
3,232,481
|
|
|
|
32.283
|
|
|
|
104,354,180
|
|
|
EUR
|
|
|
81,995
|
|
|
|
35.89
|
|
|
|
2,942,798
|
|
|
JPY
|
|
|
52,928,214
|
|
|
|
0.3134
|
|
|
|
16,587,702
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
3,089,634
|
|
|
|
32.895
|
|
|
|
101,633,497
|
|
|
USD
|
|
|
251,824
|
|
|
|
6.494
|
(Note 2)
|
|
|
8,283,759
|
|
|
EUR
|
|
|
43,933
|
|
|
|
36.00
|
|
|
|
1,581,571
|
|
|
JPY
|
|
|
9,717,089
|
|
|
|
0.2733
|
|
|
|
2,655,680
|
|
|
Non-monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HKD
|
|
|
166,727
|
|
|
|
4.24
|
|
|
|
706,924
|
|
(Continued)
- 49 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
Currencies
(In Thousands)
|
|
|
Exchange Rate
(Note 1)
|
|
|
Carrying
Amount
(In Thousands)
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
$
|
2,952,404
|
|
|
|
32.895
|
|
|
$
|
97,119,331
|
|
|
EUR
|
|
|
44,174
|
|
|
|
36.00
|
|
|
|
1,590,264
|
|
|
JPY
|
|
|
26,416,113
|
|
|
|
0.2733
|
|
|
|
7,219,524
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
4,645,790
|
|
|
|
31.070
|
|
|
|
144,344,694
|
|
|
RMB
|
|
|
2,496,163
|
|
|
|
0.161
|
(Note 3)
|
|
|
12,507,023
|
|
|
EUR
|
|
|
218,538
|
|
|
|
34.70
|
|
|
|
7,583,271
|
|
|
JPY
|
|
|
39,072,839
|
|
|
|
0.2542
|
|
|
|
9,932,316
|
|
|
Non-monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HKD
|
|
|
179,390
|
|
|
|
4.01
|
|
|
|
719,354
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
2,516,198
|
|
|
|
31.070
|
|
|
|
78,178,285
|
|
|
EUR
|
|
|
224,175
|
|
|
|
34.70
|
|
|
|
7,778,856
|
|
|
JPY
|
|
|
41,504,262
|
|
|
|
0.2542
|
|
|
|
10,550,383
|
|
(Concluded)
|
|
Note 1:
|
Except as otherwise noted, exchange rate represents the number of N.T. dollars for which one foreign currency could be exchanged.
|
|
|
Note 2:
|
The exchange rate represents the number of RMB for which one USD dollars could be exchanged.
|
|
|
Note 3:
|
The exchange rate represents the number of USD dollars for which one RMB could be exchanged.
|
The realized and unrealized foreign exchange losses were NT$807,218 thousand and NT$292,295 thousand for the three months ended June 30, 2016
and 2015, respectively; NT$1,900,836 thousand and NT$244,112 thousand for the six months ended June 30, 2016 and 2015, respectively. Since there were varieties of foreign currency transactions and functional currencies within the
subsidiaries of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact.
- 50 -
|
38.
|
OPERATING SEGMENTS INFORMATION
|
The Company’s only reportable segment is the foundry segment. The
foundry segment engages mainly in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks. The Company also had other operating segments that
did not exceed the quantitative threshold for separate reporting. These segments mainly engaged in the researching, developing, designing, manufacturing and selling of renewable energy and efficiency related technologies and products.
The Company uses the income from operations as the measurement for segment profit and the basis of performance assessment. There was no
material differences between the accounting policies of the operating segment and the accounting policies described in Note 4.
|
|
b.
|
Segment revenue and operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foundry
|
|
|
Others
|
|
|
Total
|
|
|
|
|
|
|
|
Three months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue from external customers
|
|
$
|
221,809,846
|
|
|
$
|
—
|
|
|
$
|
221,809,846
|
|
|
Income from operations
|
|
|
91,321,001
|
|
|
|
—
|
|
|
|
91,321,001
|
|
|
|
|
|
|
|
Three months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue from external customers
|
|
|
205,167,427
|
|
|
|
272,325
|
|
|
|
205,439,752
|
|
|
Income (loss) from operations
|
|
|
77,380,992
|
|
|
|
(311,934
|
)
|
|
|
77,069,058
|
|
|
|
|
|
|
|
Six months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue from external customers
|
|
|
425,305,207
|
|
|
|
—
|
|
|
|
425,305,207
|
|
|
Income from operations
|
|
|
161,788,315
|
|
|
|
—
|
|
|
|
161,788,315
|
|
|
|
|
|
|
|
Six months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue from external customers
|
|
|
427,062,560
|
|
|
|
411,336
|
|
|
|
427,473,896
|
|
|
Income (loss) from operations
|
|
|
164,356,759
|
|
|
|
(661,578
|
)
|
|
|
163,695,181
|
|
|
39.
|
ADDITIONAL DISCLOSURES
|
Following are the additional disclosures required by the
Securities and Futures Bureau for TSMC:
|
|
a.
|
Financings provided: Please see Table 1 attached;
|
|
|
b.
|
Endorsement/guarantee provided: Please see Table 2 attached;
|
|
|
c.
|
Marketable securities held (excluding investments in subsidiaries, associates and joint venture): Please see Table 3 attached;
|
|
|
d.
|
Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: Please see Table 4 attached;
|
|
|
e.
|
Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in capital: Please see Table 5 attached;
|
- 51 -
|
|
f.
|
Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None;
|
|
|
g.
|
Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Please see Table 6 attached;
|
|
|
h.
|
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 7 attached;
|
|
|
i.
|
Information about the derivative financial instruments transaction: Please see Notes 7 and 10;
|
|
|
j.
|
Others: The business relationship between the parent and the subsidiaries and significant transactions between them: Please see Table 8 attached;
|
|
|
k.
|
Names, locations, and related information of investees over which TSMC exercises significant influence (excluding information on investment in Mainland China): Please see Table 9 attached;
|
|
|
l.
|
Information on investment in Mainland China
|
|
|
1)
|
The name of the investee in Mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the
investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: Please see Table 10 attached.
|
|
|
2)
|
Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in Mainland
China on financial reports: Please see Table 8 attached.
|
- 52 -
TABLE 1
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
FINANCINGS PROVIDED
FOR THE SIX MONTH ENDED JUNE 30,
2016
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No.
|
|
Financing
Company
|
|
Counter-
party
|
|
Financial
Statement
Account
|
|
Related
Party
|
|
Maximum
Balance for
the Period
(RMB in
Thousands)
(Note 2)
|
|
|
Ending
Balance
(RMB in
Thousands)
(Note 2)
|
|
|
Amount
Actually
Drawn
(RMB in
Thousands)
|
|
|
Interest
Rate
|
|
|
Nature
for
Financing
|
|
Transaction
Amounts
|
|
|
Reason
for
Financing
|
|
Allowance
for Bad
Debt
|
|
|
Collateral
|
|
|
Financing
Limits for
Each
Borrowing
Company
|
|
|
Financing
Company’s
Total
Financing
Amount
Limits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item
|
|
|
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
TSMC China
|
|
TSMC Nanjing
|
|
Other receivables from related parties
|
|
Yes
|
|
$
(RMB
|
3,887,600
800,000
|
)
|
|
$
(RMB
|
3,887,600
800,000
|
)
|
|
$
(RMB
|
1,700,825
350,000
|
)
|
|
|
1.3
|
%
|
|
The need for
short-term
financing
|
|
$
|
—
|
|
|
Operating
capital
|
|
$
|
—
|
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
40,833,154
(Note 1
|
)
|
|
$
|
40,833,154
(Note 1
|
)
|
|
Note 1:
|
The total amount for lending to a company for funding for a short-term period shall not exceed ten percent (10%) of the net worth of TSMC China. In addition, the total amount lendable to any one borrower shall be
no more than thirty percent (30%) of the borrower’s net worth. The above restriction does not apply to the subsidiaries whose voting shares are 100% owned, directly or indirectly, by TSMC. However, the total amount lendable to 100%
owned subsidiaries by TSMC shall not exceed forty percent (40%) of the net worth of TSMC China. When there is a lending for funding needs by TSMC China to TSMC, or to the subsidiaries, which are not located in Taiwan, directly or indirectly
wholly owned by TSMC, the lending will not be subject to the restriction set forth in the above paragraph of this Article. Notwithstanding the foregoing, the aggregate amount available for lending and the total amount lending limit for such
borrower still shall not exceed the net worth of TSMC China.
|
|
Note 2:
|
The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.
|
- 53 -
TABLE 2
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
ENDORSEMENTS/GUARANTEES PROVIDED
FOR THE SIX MONTH
ENDED JUNE 30, 2016
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No.
|
|
Endorsement/
Guarantee Provider
|
|
Guaranteed Party
|
|
Limits
on
Endorsement/
Guarantee
Amount
Provided to Each
Guaranteed
Party
(Notes 1 and 2)
|
|
|
Maximum
Balance
for the Period
(US$ in
Thousands)
(Note 3)
|
|
|
Ending
Balance
(US$ in
Thousands)
(Note 3)
|
|
|
Amount
Actually
Drawn
(US$ in
Thousands)
|
|
|
Amount of
Endorsement/
Guarantee
Collateralized
by Properties
|
|
|
Ratio of
Accumulated
Endorsement/
Guarantee to
Net Equity
per Latest
Financial
Statements
|
|
|
Maximum
Endorsement/
Guarantee
Amount
Allowable
(Note 2)
|
|
|
Guarantee
Provided
by Parent
Company
|
|
Guarantee
Provided by
A Subsidiary
|
|
Guarantee
Provided to
Subsidiaries
in Mainland
China
|
|
|
|
Name
|
|
Nature of
Relationship
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0
|
|
TSMC
|
|
TSMC Global
|
|
Subsidiary
|
|
$
|
299,113,534
|
|
|
$
(US$
|
48,424,500
1,500,000
|
)
|
|
$
(US$
|
48,424,500
1,500,000
|
)
|
|
$
(US$
|
48,424,500
1,500,000
|
)
|
|
$
|
—
|
|
|
|
4.05
|
%
|
|
$
|
299,113,534
|
|
|
Yes
|
|
No
|
|
No
|
|
|
|
|
|
TSMC North America
|
|
Subsidiary
|
|
|
299,113,534
|
|
|
(US$
|
2,686,375
83,213
|
)
|
|
(US$
|
2,686,375
83,213
|
)
|
|
(US$
|
2,686,375
83,213
|
)
|
|
|
—
|
|
|
|
0.22
|
%
|
|
|
299,113,534
|
|
|
Yes
|
|
No
|
|
No
|
|
Note 1:
|
The total amount of the guarantee provided by TSMC to any individual entity shall not exceed ten percent (10%) of TSMC’s net worth, or the net worth of such entity. However, subsidiaries whose voting shares
are 100% owned, directly or indirectly, by TSMC are not subject to the above restrictions after the approval of the Board of Directors.
|
|
Note 2:
|
The total amount of guarantee shall not exceed twenty-five percent (25%) of TSMC’s net worth.
|
|
Note 3:
|
The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.
|
- 54 -
TABLE 3
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
MARKETABLE SECURITIES HELD
JUNE 30, 2016
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
|
Financial Statement Account
|
|
June 30, 2016
|
|
|
Note
|
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
Bank debentures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Export-Import Bank of the ROC
|
|
|
—
|
|
|
Held-to-maturity financial assets
|
|
|
—
|
|
|
$
|
149,999
|
|
|
|
N/A
|
|
|
$
|
149,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPC Corporation, Taiwan
|
|
|
—
|
|
|
Held-to-maturity financial assets
|
|
|
—
|
|
|
|
3,050,535
|
|
|
|
N/A
|
|
|
|
3,053,903
|
|
|
|
|
|
|
|
|
Taiwan Power Company
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
|
1,203,797
|
|
|
|
N/A
|
|
|
|
1,205,101
|
|
|
|
|
|
|
|
|
Hon Hai Precision Ind. Co., Ltd.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
|
801,187
|
|
|
|
N/A
|
|
|
|
802,422
|
|
|
|
|
|
|
|
|
Nan Ya Plastics Corporation
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
|
301,494
|
|
|
|
N/A
|
|
|
|
301,499
|
|
|
|
|
|
|
|
|
Formosa Plastics Corporation
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
|
175,317
|
|
|
|
N/A
|
|
|
|
175,595
|
|
|
|
|
|
|
|
|
Formosa Petrochemical Corporation
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
|
100,460
|
|
|
|
N/A
|
|
|
|
100,833
|
|
|
|
|
|
|
|
|
China Steel Corporation
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
|
100,169
|
|
|
|
N/A
|
|
|
|
100,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structure deposit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hua Nan Commercial Bank
|
|
|
—
|
|
|
Held-to-maturity financial assets
|
|
|
—
|
|
|
|
2,000,000
|
|
|
|
N/A
|
|
|
|
1,997,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taiwan Power Company
|
|
|
—
|
|
|
Held-to-maturity financial assets
|
|
|
80
|
|
|
|
798,708
|
|
|
|
N/A
|
|
|
|
799,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motech
|
|
|
—
|
|
|
Available-for-sale financial assets
|
|
|
58,320
|
|
|
|
1,953,713
|
|
|
|
12
|
|
|
|
1,953,713
|
|
|
|
|
|
|
|
|
Semiconductor Manufacturing International Corporation
|
|
|
—
|
|
|
”
|
|
|
211,047
|
|
|
|
544,333
|
|
|
|
1
|
|
|
|
544,333
|
|
|
|
|
|
|
|
|
RichWave Technology Corp.
|
|
|
—
|
|
|
”
|
|
|
2,007
|
|
|
|
143,902
|
|
|
|
4
|
|
|
|
143,902
|
|
|
|
|
|
|
|
|
United Industrial Gases Co., Ltd.
|
|
|
—
|
|
|
Financial assets carried at cost
|
|
|
21,230
|
|
|
|
193,584
|
|
|
|
10
|
|
|
|
193,584
|
|
|
|
|
|
|
|
|
Shin-Etsu Handotai Taiwan Co., Ltd.
|
|
|
—
|
|
|
”
|
|
|
10,500
|
|
|
|
105,000
|
|
|
|
7
|
|
|
|
105,000
|
|
|
|
|
|
|
|
|
Global Investment Holding Inc.
|
|
|
—
|
|
|
”
|
|
|
11,124
|
|
|
|
99,041
|
|
|
|
6
|
|
|
|
99,041
|
|
|
|
|
|
|
|
|
W.K. Technology Fund IV
|
|
|
—
|
|
|
”
|
|
|
2,560
|
|
|
|
18,121
|
|
|
|
2
|
|
|
|
18,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QST Holdings, LLC
|
|
|
—
|
|
|
Financial assets carried at cost
|
|
|
4,034
|
|
|
|
4,537
|
|
|
|
4
|
|
|
|
4,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Horizon Ventures Fund
|
|
|
—
|
|
|
Financial assets carried at cost
|
|
|
—
|
|
|
|
11,259
|
|
|
|
12
|
|
|
|
11,259
|
|
|
|
|
|
|
|
|
Crimson Asia Capital
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
|
8,263
|
|
|
|
1
|
|
|
|
8,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Partners
|
|
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tela Innovations
|
|
|
—
|
|
|
Financial assets carried at cost
|
|
|
10,440
|
|
|
US$
|
65,000
|
|
|
|
25
|
|
|
US$
|
65,000
|
|
|
|
|
|
|
|
|
Mcube Inc.
|
|
|
—
|
|
|
”
|
|
|
6,333
|
|
|
|
—
|
|
|
|
14
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Walden Venture Investments II, L.P.
|
|
|
—
|
|
|
Financial assets carried at cost
|
|
|
—
|
|
|
US$
|
5,951
|
|
|
|
9
|
|
|
US$
|
5,951
|
|
|
|
|
|
|
|
|
Shanghai Walden Venture Capital Enterprise
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
5,000
|
|
|
|
6
|
|
|
US$
|
5,000
|
|
|
|
|
|
(Continued)
- 55 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
|
Financial Statement Account
|
|
June 30, 2016
|
|
|
Note
|
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Corporate bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JPMorgan Chase & Co.
|
|
|
—
|
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
US$
|
16,152
|
|
|
|
N/A
|
|
|
US$
|
16,152
|
|
|
|
|
|
|
|
|
Bank of America Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
12,390
|
|
|
|
N/A
|
|
|
US$
|
12,390
|
|
|
|
|
|
|
|
|
Aetna Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
9,014
|
|
|
|
N/A
|
|
|
US$
|
9,014
|
|
|
|
|
|
|
|
|
Hyundai Capital America
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
8,643
|
|
|
|
N/A
|
|
|
US$
|
8,643
|
|
|
|
|
|
|
|
|
Walgreens Boots Alliance
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
8,106
|
|
|
|
N/A
|
|
|
US$
|
8,106
|
|
|
|
|
|
|
|
|
Sysco Corporation
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
8,034
|
|
|
|
N/A
|
|
|
US$
|
8,034
|
|
|
|
|
|
|
|
|
AT&T Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
7,973
|
|
|
|
N/A
|
|
|
US$
|
7,973
|
|
|
|
|
|
|
|
|
Southern Co.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
7,746
|
|
|
|
N/A
|
|
|
US$
|
7,746
|
|
|
|
|
|
|
|
|
Verizon Communications
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
7,228
|
|
|
|
N/A
|
|
|
US$
|
7,228
|
|
|
|
|
|
|
|
|
Citigroup Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
6,782
|
|
|
|
N/A
|
|
|
US$
|
6,782
|
|
|
|
|
|
|
|
|
Anheuser Busch InBev Fin.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
6,740
|
|
|
|
N/A
|
|
|
US$
|
6,740
|
|
|
|
|
|
|
|
|
Bank of Ny Mellon Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
6,187
|
|
|
|
N/A
|
|
|
US$
|
6,187
|
|
|
|
|
|
|
|
|
BB&T Corporation
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
6,093
|
|
|
|
N/A
|
|
|
US$
|
6,093
|
|
|
|
|
|
|
|
|
Fortive Corporation
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
6,088
|
|
|
|
N/A
|
|
|
US$
|
6,088
|
|
|
|
|
|
|
|
|
Citizens Bank NA/RI
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
5,839
|
|
|
|
N/A
|
|
|
US$
|
5,839
|
|
|
|
|
|
|
|
|
Intl Bk Recon & Develop
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
5,605
|
|
|
|
N/A
|
|
|
US$
|
5,605
|
|
|
|
|
|
|
|
|
State Street Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
5,586
|
|
|
|
N/A
|
|
|
US$
|
5,586
|
|
|
|
|
|
|
|
|
Oracle Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
5,444
|
|
|
|
N/A
|
|
|
US$
|
5,444
|
|
|
|
|
|
|
|
|
Chevron Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
5,332
|
|
|
|
N/A
|
|
|
US$
|
5,332
|
|
|
|
|
|
|
|
|
Principal Lfe Glb Fnd II
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
5,229
|
|
|
|
N/A
|
|
|
US$
|
5,229
|
|
|
|
|
|
|
|
|
Morgan Stanley
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
5,062
|
|
|
|
N/A
|
|
|
US$
|
5,062
|
|
|
|
|
|
|
|
|
PNC Bank NA
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
5,002
|
|
|
|
N/A
|
|
|
US$
|
5,002
|
|
|
|
|
|
|
|
|
Wells Fargo & Company
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,996
|
|
|
|
N/A
|
|
|
US$
|
4,996
|
|
|
|
|
|
|
|
|
Swedbank AB
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,983
|
|
|
|
N/A
|
|
|
US$
|
4,983
|
|
|
|
|
|
|
|
|
Toronto Dominion Bank
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,853
|
|
|
|
N/A
|
|
|
US$
|
4,853
|
|
|
|
|
|
|
|
|
Abbvie Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,851
|
|
|
|
N/A
|
|
|
US$
|
4,851
|
|
|
|
|
|
|
|
|
ING Bank N.V.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,755
|
|
|
|
N/A
|
|
|
US$
|
4,755
|
|
|
|
|
|
|
|
|
KfW
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,642
|
|
|
|
N/A
|
|
|
US$
|
4,642
|
|
|
|
|
|
|
|
|
American Intl Group
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,641
|
|
|
|
N/A
|
|
|
US$
|
4,641
|
|
|
|
|
|
|
|
|
Morgan Stanley
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,600
|
|
|
|
N/A
|
|
|
US$
|
4,600
|
|
|
|
|
|
|
|
|
US Bank NA Cincinnati
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,528
|
|
|
|
N/A
|
|
|
US$
|
4,528
|
|
|
|
|
|
|
|
|
CVS Health Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,504
|
|
|
|
N/A
|
|
|
US$
|
4,504
|
|
|
|
|
|
|
|
|
Shell International Fin.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,502
|
|
|
|
N/A
|
|
|
US$
|
4,502
|
|
|
|
|
|
|
|
|
Mitsubishi UFJ Fin Grp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,149
|
|
|
|
N/A
|
|
|
US$
|
4,149
|
|
|
|
|
|
|
|
|
Ameren Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,120
|
|
|
|
N/A
|
|
|
US$
|
4,120
|
|
|
|
|
|
|
|
|
Chubb Ina Holdings Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,113
|
|
|
|
N/A
|
|
|
US$
|
4,113
|
|
|
|
|
|
|
|
|
Svenska Handelsbanken AB
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,109
|
|
|
|
N/A
|
|
|
US$
|
4,109
|
|
|
|
|
|
|
|
|
Goldman Sachs Group Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,088
|
|
|
|
N/A
|
|
|
US$
|
4,088
|
|
|
|
|
|
|
|
|
Cisco Systems Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
4,014
|
|
|
|
N/A
|
|
|
US$
|
4,014
|
|
|
|
|
|
|
|
|
Enel Finance Intl N.V.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,943
|
|
|
|
N/A
|
|
|
US$
|
3,943
|
|
|
|
|
|
|
|
|
National Rural Util. Coop.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,920
|
|
|
|
N/A
|
|
|
US$
|
3,920
|
|
|
|
|
|
|
|
|
UBS Group Funding
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,621
|
|
|
|
N/A
|
|
|
US$
|
3,621
|
|
|
|
|
|
|
|
|
Fifth Third Bancorp
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,523
|
|
|
|
N/A
|
|
|
US$
|
3,523
|
|
|
|
|
|
|
|
|
Express Scripts Holding
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,365
|
|
|
|
N/A
|
|
|
US$
|
3,365
|
|
|
|
|
|
|
|
|
Lam Research Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,316
|
|
|
|
N/A
|
|
|
US$
|
3,316
|
|
|
|
|
|
|
|
|
BMW US Capital LLC
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,244
|
|
|
|
N/A
|
|
|
US$
|
3,244
|
|
|
|
|
|
|
|
|
Morgan Stanley
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,101
|
|
|
|
N/A
|
|
|
US$
|
3,101
|
|
|
|
|
|
|
|
|
ERAC USA Finance LLC
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,049
|
|
|
|
N/A
|
|
|
US$
|
3,049
|
|
|
|
|
|
|
|
|
Credit Agricole London
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,034
|
|
|
|
N/A
|
|
|
US$
|
3,034
|
|
|
|
|
|
|
|
|
Suncorp Metway Ltd.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,033
|
|
|
|
N/A
|
|
|
US$
|
3,033
|
|
|
|
|
|
|
|
|
Protective Life Global
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,018
|
|
|
|
N/A
|
|
|
US$
|
3,018
|
|
|
|
|
|
|
|
|
Westpac Banking Corporation
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,003
|
|
|
|
N/A
|
|
|
US$
|
3,003
|
|
|
|
|
|
|
|
|
Fifth Third Bank
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
2,873
|
|
|
|
N/A
|
|
|
US$
|
2,873
|
|
|
|
|
|
(Continued)
- 56 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2016
|
|
|
Note
|
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Corporate bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ryder System Inc.
|
|
—
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
US$
|
2,536
|
|
|
|
N/A
|
|
|
US$
|
2,536
|
|
|
|
|
|
|
|
|
Nordea Bank AB
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,532
|
|
|
|
N/A
|
|
|
US$
|
2,532
|
|
|
|
|
|
|
|
|
Allied World Assurance
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,227
|
|
|
|
N/A
|
|
|
US$
|
2,227
|
|
|
|
|
|
|
|
|
Comcast Corp.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,146
|
|
|
|
N/A
|
|
|
US$
|
2,146
|
|
|
|
|
|
|
|
|
Xcel Energy Inc.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,056
|
|
|
|
N/A
|
|
|
US$
|
2,056
|
|
|
|
|
|
|
|
|
Mizuho Financial Group
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,037
|
|
|
|
N/A
|
|
|
US$
|
2,037
|
|
|
|
|
|
|
|
|
PSEG Power LLC
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,035
|
|
|
|
N/A
|
|
|
US$
|
2,035
|
|
|
|
|
|
|
|
|
Bank of Ny Mellon Corp.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,031
|
|
|
|
N/A
|
|
|
US$
|
2,031
|
|
|
|
|
|
|
|
|
Reliance Stand Life II
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,030
|
|
|
|
N/A
|
|
|
US$
|
2,030
|
|
|
|
|
|
|
|
|
Jackson Natl Life Global
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,026
|
|
|
|
N/A
|
|
|
US$
|
2,026
|
|
|
|
|
|
|
|
|
New York Life Global FDG
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,019
|
|
|
|
N/A
|
|
|
US$
|
2,019
|
|
|
|
|
|
|
|
|
FMS Wertmanagement
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,019
|
|
|
|
N/A
|
|
|
US$
|
2,019
|
|
|
|
|
|
|
|
|
Wells Fargo Bank NA
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,017
|
|
|
|
N/A
|
|
|
US$
|
2,017
|
|
|
|
|
|
|
|
|
BP Capital Markets PLC
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,016
|
|
|
|
N/A
|
|
|
US$
|
2,016
|
|
|
|
|
|
|
|
|
Asian Development Bank
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,013
|
|
|
|
N/A
|
|
|
US$
|
2,013
|
|
|
|
|
|
|
|
|
Pricoa Global Funding 144A
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,013
|
|
|
|
N/A
|
|
|
US$
|
2,013
|
|
|
|
|
|
|
|
|
Nordic Investment Bank
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,012
|
|
|
|
N/A
|
|
|
US$
|
2,012
|
|
|
|
|
|
|
|
|
Autozone Inc.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,965
|
|
|
|
N/A
|
|
|
US$
|
1,965
|
|
|
|
|
|
|
|
|
Oncor Electric Delivery
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,885
|
|
|
|
N/A
|
|
|
US$
|
1,885
|
|
|
|
|
|
|
|
|
Electricite de France SA
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,839
|
|
|
|
N/A
|
|
|
US$
|
1,839
|
|
|
|
|
|
|
|
|
Public Service Colorado
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,712
|
|
|
|
N/A
|
|
|
US$
|
1,712
|
|
|
|
|
|
|
|
|
JPMorgan Chase & Co.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,609
|
|
|
|
N/A
|
|
|
US$
|
1,609
|
|
|
|
|
|
|
|
|
Heineken N.V.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,602
|
|
|
|
N/A
|
|
|
US$
|
1,602
|
|
|
|
|
|
|
|
|
African Development Bank
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,589
|
|
|
|
N/A
|
|
|
US$
|
1,589
|
|
|
|
|
|
|
|
|
Capital One Bank (USA), NA
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,561
|
|
|
|
N/A
|
|
|
US$
|
1,561
|
|
|
|
|
|
|
|
|
Unum Group
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,534
|
|
|
|
N/A
|
|
|
US$
|
1,534
|
|
|
|
|
|
|
|
|
Nextera Energy Capital
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,529
|
|
|
|
N/A
|
|
|
US$
|
1,529
|
|
|
|
|
|
|
|
|
Guardian Life Glob Fund
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,520
|
|
|
|
N/A
|
|
|
US$
|
1,520
|
|
|
|
|
|
|
|
|
Wm. Wrigley Jr. Co.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,516
|
|
|
|
N/A
|
|
|
US$
|
1,516
|
|
|
|
|
|
|
|
|
Medtronic Inc.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,513
|
|
|
|
N/A
|
|
|
US$
|
1,513
|
|
|
|
|
|
|
|
|
Pfizer Inc.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,512
|
|
|
|
N/A
|
|
|
US$
|
1,512
|
|
|
|
|
|
|
|
|
Biogen Inc.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,382
|
|
|
|
N/A
|
|
|
US$
|
1,382
|
|
|
|
|
|
|
|
|
General Electric Co.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,336
|
|
|
|
N/A
|
|
|
US$
|
1,336
|
|
|
|
|
|
|
|
|
Unitedhealth Group Inc.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,319
|
|
|
|
N/A
|
|
|
US$
|
1,319
|
|
|
|
|
|
|
|
|
CSX Corp.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,290
|
|
|
|
N/A
|
|
|
US$
|
1,290
|
|
|
|
|
|
|
|
|
Stryker Corp.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,169
|
|
|
|
N/A
|
|
|
US$
|
1,169
|
|
|
|
|
|
|
|
|
American Intl Group
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,162
|
|
|
|
N/A
|
|
|
US$
|
1,162
|
|
|
|
|
|
|
|
|
Trans Canada Pipelines
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,153
|
|
|
|
N/A
|
|
|
US$
|
1,153
|
|
|
|
|
|
|
|
|
Corning Inc.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,145
|
|
|
|
N/A
|
|
|
US$
|
1,145
|
|
|
|
|
|
|
|
|
Pacificorp
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,094
|
|
|
|
N/A
|
|
|
US$
|
1,094
|
|
|
|
|
|
|
|
|
Merck & Co Inc.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,077
|
|
|
|
N/A
|
|
|
US$
|
1,077
|
|
|
|
|
|
|
|
|
Statoil ASA
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,042
|
|
|
|
N/A
|
|
|
US$
|
1,042
|
|
|
|
|
|
|
|
|
Gilead Sciences Inc.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,039
|
|
|
|
N/A
|
|
|
US$
|
1,039
|
|
|
|
|
|
|
|
|
Keycorp
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,034
|
|
|
|
N/A
|
|
|
US$
|
1,034
|
|
|
|
|
|
|
|
|
Celgene Corp.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,034
|
|
|
|
N/A
|
|
|
US$
|
1,034
|
|
|
|
|
|
|
|
|
Met Life Glob Funding I
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,023
|
|
|
|
N/A
|
|
|
US$
|
1,023
|
|
|
|
|
|
|
|
|
Suntrust Banks Inc.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,021
|
|
|
|
N/A
|
|
|
US$
|
1,021
|
|
|
|
|
|
|
|
|
Schlumberger Hldgs Corp.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,020
|
|
|
|
N/A
|
|
|
US$
|
1,020
|
|
|
|
|
|
|
|
|
UBS AG Stamford CT
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,020
|
|
|
|
N/A
|
|
|
US$
|
1,020
|
|
|
|
|
|
|
|
|
Bank of America N.A.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,015
|
|
|
|
N/A
|
|
|
US$
|
1,015
|
|
|
|
|
|
|
|
|
Rabobank Nederland NY
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,009
|
|
|
|
N/A
|
|
|
US$
|
1,009
|
|
|
|
|
|
|
|
|
Carnival Corp.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,009
|
|
|
|
N/A
|
|
|
US$
|
1,009
|
|
|
|
|
|
|
|
|
Visa Inc.
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,006
|
|
|
|
N/A
|
|
|
US$
|
1,006
|
|
|
|
|
|
(Continued)
- 57 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
|
Financial Statement Account
|
|
June 30, 2016
|
|
|
Note
|
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Corporate bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSBC USA Inc.
|
|
|
—
|
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
US$
|
1,005
|
|
|
|
N/A
|
|
|
US$
|
1,005
|
|
|
|
|
|
|
|
|
Eaton Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
1,005
|
|
|
|
N/A
|
|
|
US$
|
1,005
|
|
|
|
|
|
|
|
|
AIG Global Funding
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
1,004
|
|
|
|
N/A
|
|
|
US$
|
1,004
|
|
|
|
|
|
|
|
|
IBM Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
1,004
|
|
|
|
N/A
|
|
|
US$
|
1,004
|
|
|
|
|
|
|
|
|
Royal Bank of Canada
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
1,003
|
|
|
|
N/A
|
|
|
US$
|
1,003
|
|
|
|
|
|
|
|
|
Credit Suisse New York
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
1,001
|
|
|
|
N/A
|
|
|
US$
|
1,001
|
|
|
|
|
|
|
|
|
Deutsche Bank AG, London
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
994
|
|
|
|
N/A
|
|
|
US$
|
994
|
|
|
|
|
|
|
|
|
Branch Banking & Trust
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
954
|
|
|
|
N/A
|
|
|
US$
|
954
|
|
|
|
|
|
|
|
|
Marsh & Mclennan Cos Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
947
|
|
|
|
N/A
|
|
|
US$
|
947
|
|
|
|
|
|
|
|
|
Mastercard Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
872
|
|
|
|
N/A
|
|
|
US$
|
872
|
|
|
|
|
|
|
|
|
Eaton Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
834
|
|
|
|
N/A
|
|
|
US$
|
834
|
|
|
|
|
|
|
|
|
Amgen Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
831
|
|
|
|
N/A
|
|
|
US$
|
831
|
|
|
|
|
|
|
|
|
BAT Intl Finance PLC
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
809
|
|
|
|
N/A
|
|
|
US$
|
809
|
|
|
|
|
|
|
|
|
Manuf & Traders Trust Co.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
766
|
|
|
|
N/A
|
|
|
US$
|
766
|
|
|
|
|
|
|
|
|
Burlingtn North Santa Fe
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
727
|
|
|
|
N/A
|
|
|
US$
|
727
|
|
|
|
|
|
|
|
|
TTX Co.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
712
|
|
|
|
N/A
|
|
|
US$
|
712
|
|
|
|
|
|
|
|
|
Commonwealth Bk Austr NY
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
655
|
|
|
|
N/A
|
|
|
US$
|
655
|
|
|
|
|
|
|
|
|
Bayer US Finance LLC
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
601
|
|
|
|
N/A
|
|
|
US$
|
601
|
|
|
|
|
|
|
|
|
Coca Cola Co/The
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
591
|
|
|
|
N/A
|
|
|
US$
|
591
|
|
|
|
|
|
|
|
|
Mcdonald S Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
560
|
|
|
|
N/A
|
|
|
US$
|
560
|
|
|
|
|
|
|
|
|
BPCE SA
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
514
|
|
|
|
N/A
|
|
|
US$
|
514
|
|
|
|
|
|
|
|
|
ERP Operating LP
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
502
|
|
|
|
N/A
|
|
|
US$
|
502
|
|
|
|
|
|
|
|
|
Duke Energy Corp.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
429
|
|
|
|
N/A
|
|
|
US$
|
429
|
|
|
|
|
|
|
|
|
Pepsico Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
416
|
|
|
|
N/A
|
|
|
US$
|
416
|
|
|
|
|
|
|
|
|
BB&T Corporation
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
414
|
|
|
|
N/A
|
|
|
US$
|
414
|
|
|
|
|
|
|
|
|
American Honda Finance
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
383
|
|
|
|
N/A
|
|
|
US$
|
383
|
|
|
|
|
|
|
|
|
Equifax Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
314
|
|
|
|
N/A
|
|
|
US$
|
314
|
|
|
|
|
|
|
|
|
Nissan Motor Acceptance
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
299
|
|
|
|
N/A
|
|
|
US$
|
299
|
|
|
|
|
|
|
|
|
Philip Morris Intl Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
292
|
|
|
|
N/A
|
|
|
US$
|
292
|
|
|
|
|
|
|
|
|
U.S. Bancorp
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
267
|
|
|
|
N/A
|
|
|
US$
|
267
|
|
|
|
|
|
|
|
|
Ford Motor Credit Co LLC
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
263
|
|
|
|
N/A
|
|
|
US$
|
263
|
|
|
|
|
|
|
|
|
Capital One NA
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
249
|
|
|
|
N/A
|
|
|
US$
|
249
|
|
|
|
|
|
|
|
|
Bank of Nova Scotia
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
249
|
|
|
|
N/A
|
|
|
US$
|
249
|
|
|
|
|
|
|
|
|
Rolls Royce PLC
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
231
|
|
|
|
N/A
|
|
|
US$
|
231
|
|
|
|
|
|
|
|
|
HSBC Holdings PLC
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
217
|
|
|
|
N/A
|
|
|
US$
|
217
|
|
|
|
|
|
|
|
|
Berkshire Hathaway Fin.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
137
|
|
|
|
N/A
|
|
|
US$
|
137
|
|
|
|
|
|
|
|
|
Capital One Financial Co.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
122
|
|
|
|
N/A
|
|
|
US$
|
122
|
|
|
|
|
|
|
|
|
JPMorgan Chase & Co.
|
|
|
—
|
|
|
Held-to-maturity financial assets
|
|
|
—
|
|
|
US$
|
153,765
|
|
|
|
N/A
|
|
|
US$
|
154,276
|
|
|
|
|
|
|
|
|
Wells Fargo & Company
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
150,007
|
|
|
|
N/A
|
|
|
US$
|
149,366
|
|
|
|
|
|
|
|
|
Goldman Sachs Group, Inc.
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
100,000
|
|
|
|
N/A
|
|
|
US$
|
100,898
|
|
|
|
|
|
|
|
|
Westpac Banking Corporation
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
100,000
|
|
|
|
N/A
|
|
|
US$
|
100,497
|
|
|
|
|
|
|
|
|
Commonwealth Bank of Australia
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
50,000
|
|
|
|
N/A
|
|
|
US$
|
50,294
|
|
|
|
|
|
|
|
|
National Australia Bank
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
50,000
|
|
|
|
N/A
|
|
|
US$
|
50,176
|
|
|
|
|
|
|
|
|
Bank of Nova Scotia
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
49,979
|
|
|
|
N/A
|
|
|
US$
|
50,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Treasury N/B
|
|
|
—
|
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
US$
|
38,908
|
|
|
|
N/A
|
|
|
US$
|
38,908
|
|
|
|
|
|
|
|
|
US Treasury Floating Rate Note
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
21,667
|
|
|
|
N/A
|
|
|
US$
|
21,667
|
|
|
|
|
|
|
|
|
Treasury Inflation-Indexed N/B
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
9,175
|
|
|
|
N/A
|
|
|
US$
|
9,175
|
|
|
|
|
|
|
|
|
Abu Dhabi Government International Bond
|
|
|
—
|
|
|
”
|
|
|
—
|
|
|
US$
|
3,540
|
|
|
|
N/A
|
|
|
US$
|
3,540
|
|
|
|
|
|
(Continued)
- 58 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2016
|
|
|
Note
|
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Agency bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fnma Pool AL7191
|
|
—
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
US$
|
14,450
|
|
|
|
N/A
|
|
|
US$
|
14,450
|
|
|
|
|
|
|
|
|
Fnma Pool 888577
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
10,949
|
|
|
|
N/A
|
|
|
US$
|
10,949
|
|
|
|
|
|
|
|
|
Fnma Pool AV5062
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
9,641
|
|
|
|
N/A
|
|
|
US$
|
9,641
|
|
|
|
|
|
|
|
|
Fnma Pool AL8703
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
8,070
|
|
|
|
N/A
|
|
|
US$
|
8,070
|
|
|
|
|
|
|
|
|
Fnma Pool 890731
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
7,895
|
|
|
|
N/A
|
|
|
US$
|
7,895
|
|
|
|
|
|
|
|
|
Fnma Pool AL4193
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
6,829
|
|
|
|
N/A
|
|
|
US$
|
6,829
|
|
|
|
|
|
|
|
|
Fnma Pool AL7437
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
6,407
|
|
|
|
N/A
|
|
|
US$
|
6,407
|
|
|
|
|
|
|
|
|
Fnma Pool AL1543
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
5,908
|
|
|
|
N/A
|
|
|
US$
|
5,908
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool J32501
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
5,507
|
|
|
|
N/A
|
|
|
US$
|
5,507
|
|
|
|
|
|
|
|
|
Fnma Pool AD4037
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
4,685
|
|
|
|
N/A
|
|
|
US$
|
4,685
|
|
|
|
|
|
|
|
|
Fnma Pool 995113
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
4,533
|
|
|
|
N/A
|
|
|
US$
|
4,533
|
|
|
|
|
|
|
|
|
Fnma Pool AL7671
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
4,290
|
|
|
|
N/A
|
|
|
US$
|
4,290
|
|
|
|
|
|
|
|
|
Fnma Pool AL0516
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
3,909
|
|
|
|
N/A
|
|
|
US$
|
3,909
|
|
|
|
|
|
|
|
|
Fnma Pool AS3460
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
3,760
|
|
|
|
N/A
|
|
|
US$
|
3,760
|
|
|
|
|
|
|
|
|
Fnma Pool 310104
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
3,754
|
|
|
|
N/A
|
|
|
US$
|
3,754
|
|
|
|
|
|
|
|
|
Fnma Pool AB2895
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
3,579
|
|
|
|
N/A
|
|
|
US$
|
3,579
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
3,251
|
|
|
|
N/A
|
|
|
US$
|
3,251
|
|
|
|
|
|
|
|
|
Fnma Pool AL0950
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
3,069
|
|
|
|
N/A
|
|
|
US$
|
3,069
|
|
|
|
|
|
|
|
|
Fnma Pool AH5613
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
3,066
|
|
|
|
N/A
|
|
|
US$
|
3,066
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool J32520
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
3,011
|
|
|
|
N/A
|
|
|
US$
|
3,011
|
|
|
|
|
|
|
|
|
Export Import Bank Korea
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
3,002
|
|
|
|
N/A
|
|
|
US$
|
3,002
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool A94972
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,994
|
|
|
|
N/A
|
|
|
US$
|
2,994
|
|
|
|
|
|
|
|
|
Fnma Pool 725423
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,662
|
|
|
|
N/A
|
|
|
US$
|
2,662
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool 2B5202
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,625
|
|
|
|
N/A
|
|
|
US$
|
2,625
|
|
|
|
|
|
|
|
|
Fnma Pool 888637
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,404
|
|
|
|
N/A
|
|
|
US$
|
2,404
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool 849787
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,263
|
|
|
|
N/A
|
|
|
US$
|
2,263
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,230
|
|
|
|
N/A
|
|
|
US$
|
2,230
|
|
|
|
|
|
|
|
|
Fnma Pool 995024
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,202
|
|
|
|
N/A
|
|
|
US$
|
2,202
|
|
|
|
|
|
|
|
|
Fnma Pool AD0198
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,137
|
|
|
|
N/A
|
|
|
US$
|
2,137
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,087
|
|
|
|
N/A
|
|
|
US$
|
2,087
|
|
|
|
|
|
|
|
|
Fnma Pool AL6818
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,073
|
|
|
|
N/A
|
|
|
US$
|
2,073
|
|
|
|
|
|
|
|
|
Fnma Pool AY6119
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,008
|
|
|
|
N/A
|
|
|
US$
|
2,008
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,001
|
|
|
|
N/A
|
|
|
US$
|
2,001
|
|
|
|
|
|
|
|
|
Fnma Pool AL7485
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,871
|
|
|
|
N/A
|
|
|
US$
|
1,871
|
|
|
|
|
|
|
|
|
Fnma Pool AL6254
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,831
|
|
|
|
N/A
|
|
|
US$
|
1,831
|
|
|
|
|
|
|
|
|
Fnma Pool 255364
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,820
|
|
|
|
N/A
|
|
|
US$
|
1,820
|
|
|
|
|
|
|
|
|
Fnma Pool AH7196
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,722
|
|
|
|
N/A
|
|
|
US$
|
1,722
|
|
|
|
|
|
|
|
|
Fnma Pool AL7421
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,660
|
|
|
|
N/A
|
|
|
US$
|
1,660
|
|
|
|
|
|
|
|
|
Fnma Pool 930289
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,579
|
|
|
|
N/A
|
|
|
US$
|
1,579
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,501
|
|
|
|
N/A
|
|
|
US$
|
1,501
|
|
|
|
|
|
|
|
|
Fnma Pool AL4141
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,493
|
|
|
|
N/A
|
|
|
US$
|
1,493
|
|
|
|
|
|
|
|
|
Fnma Pool MA1201
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,468
|
|
|
|
N/A
|
|
|
US$
|
1,468
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,358
|
|
|
|
N/A
|
|
|
US$
|
1,358
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,319
|
|
|
|
N/A
|
|
|
US$
|
1,319
|
|
|
|
|
|
|
|
|
Federal Farm Credit Bank
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,254
|
|
|
|
N/A
|
|
|
US$
|
1,254
|
|
|
|
|
|
|
|
|
Fnma Pool 890101
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,238
|
|
|
|
N/A
|
|
|
US$
|
1,238
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,219
|
|
|
|
N/A
|
|
|
US$
|
1,219
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,216
|
|
|
|
N/A
|
|
|
US$
|
1,216
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool 849872
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,052
|
|
|
|
N/A
|
|
|
US$
|
1,052
|
|
|
|
|
|
|
|
|
Fnma Pool AL7912
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,007
|
|
|
|
N/A
|
|
|
US$
|
1,007
|
|
|
|
|
|
|
|
|
Fnma Pool AX5630
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
988
|
|
|
|
N/A
|
|
|
US$
|
988
|
|
|
|
|
|
(Continued)
- 59 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2016
|
|
|
Note
|
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Agency bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Farm Credit Bank
|
|
—
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
US$
|
913
|
|
|
|
N/A
|
|
|
US$
|
913
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool 849614
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
912
|
|
|
|
N/A
|
|
|
US$
|
912
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool 2B3772
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
891
|
|
|
|
N/A
|
|
|
US$
|
891
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool J32972
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
830
|
|
|
|
N/A
|
|
|
US$
|
830
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool V60841
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
752
|
|
|
|
N/A
|
|
|
US$
|
752
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool 840260
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
723
|
|
|
|
N/A
|
|
|
US$
|
723
|
|
|
|
|
|
|
|
|
Fnma Pool AL8471
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
698
|
|
|
|
N/A
|
|
|
US$
|
698
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
696
|
|
|
|
N/A
|
|
|
US$
|
696
|
|
|
|
|
|
|
|
|
Fnma Pool 888129
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
695
|
|
|
|
N/A
|
|
|
US$
|
695
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
694
|
|
|
|
N/A
|
|
|
US$
|
694
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
693
|
|
|
|
N/A
|
|
|
US$
|
693
|
|
|
|
|
|
|
|
|
Fnma Pool AD0249
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
667
|
|
|
|
N/A
|
|
|
US$
|
667
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool G05956
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
662
|
|
|
|
N/A
|
|
|
US$
|
662
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
660
|
|
|
|
N/A
|
|
|
US$
|
660
|
|
|
|
|
|
|
|
|
Export Developmnt Canada
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
657
|
|
|
|
N/A
|
|
|
US$
|
657
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
611
|
|
|
|
N/A
|
|
|
US$
|
611
|
|
|
|
|
|
|
|
|
Government National Mortgage Association
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
594
|
|
|
|
N/A
|
|
|
US$
|
594
|
|
|
|
|
|
|
|
|
Fnma Pool AL6302
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
580
|
|
|
|
N/A
|
|
|
US$
|
580
|
|
|
|
|
|
|
|
|
Fnma Pool 257041
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
578
|
|
|
|
N/A
|
|
|
US$
|
578
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
563
|
|
|
|
N/A
|
|
|
US$
|
563
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
561
|
|
|
|
N/A
|
|
|
US$
|
561
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
523
|
|
|
|
N/A
|
|
|
US$
|
523
|
|
|
|
|
|
|
|
|
Fnma Pool 725946
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
498
|
|
|
|
N/A
|
|
|
US$
|
498
|
|
|
|
|
|
|
|
|
Fnma Pool AL7920
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
488
|
|
|
|
N/A
|
|
|
US$
|
488
|
|
|
|
|
|
|
|
|
Fnma Pool 257004
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
465
|
|
|
|
N/A
|
|
|
US$
|
465
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool C03532
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
406
|
|
|
|
N/A
|
|
|
US$
|
406
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
397
|
|
|
|
N/A
|
|
|
US$
|
397
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool J33012
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
369
|
|
|
|
N/A
|
|
|
US$
|
369
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool G60473
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
365
|
|
|
|
N/A
|
|
|
US$
|
365
|
|
|
|
|
|
|
|
|
Fnma Pool AL0720
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
360
|
|
|
|
N/A
|
|
|
US$
|
360
|
|
|
|
|
|
|
|
|
Government National Mortgage Association
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
351
|
|
|
|
N/A
|
|
|
US$
|
351
|
|
|
|
|
|
|
|
|
Fnma Pool AL6406
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
341
|
|
|
|
N/A
|
|
|
US$
|
341
|
|
|
|
|
|
|
|
|
Fnma Pool AE0154
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
332
|
|
|
|
N/A
|
|
|
US$
|
332
|
|
|
|
|
|
|
|
|
Fnma Pool 256513
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
316
|
|
|
|
N/A
|
|
|
US$
|
316
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
313
|
|
|
|
N/A
|
|
|
US$
|
313
|
|
|
|
|
|
|
|
|
Gnma Pool 701598
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
311
|
|
|
|
N/A
|
|
|
US$
|
311
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool C03464
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
308
|
|
|
|
N/A
|
|
|
US$
|
308
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
299
|
|
|
|
N/A
|
|
|
US$
|
299
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
295
|
|
|
|
N/A
|
|
|
US$
|
295
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
291
|
|
|
|
N/A
|
|
|
US$
|
291
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool J16417
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
276
|
|
|
|
N/A
|
|
|
US$
|
276
|
|
|
|
|
|
|
|
|
Fnma Pool AH3371
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
259
|
|
|
|
N/A
|
|
|
US$
|
259
|
|
|
|
|
|
|
|
|
Fnma Pool 735997
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
245
|
|
|
|
N/A
|
|
|
US$
|
245
|
|
|
|
|
|
|
|
|
Freddie Mac
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
234
|
|
|
|
N/A
|
|
|
US$
|
234
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
216
|
|
|
|
N/A
|
|
|
US$
|
216
|
|
|
|
|
|
|
|
|
Fnma Pool 889633
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
210
|
|
|
|
N/A
|
|
|
US$
|
210
|
|
|
|
|
|
|
|
|
Fnma Pool 725424
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
180
|
|
|
|
N/A
|
|
|
US$
|
180
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
174
|
|
|
|
N/A
|
|
|
US$
|
174
|
|
|
|
|
|
|
|
|
Fnma Pool 889576
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
169
|
|
|
|
N/A
|
|
|
US$
|
169
|
|
|
|
|
|
|
|
|
Fnma Pool 888994
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
153
|
|
|
|
N/A
|
|
|
US$
|
153
|
|
|
|
|
|
|
|
|
Fnma Pool 970382
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
136
|
|
|
|
N/A
|
|
|
US$
|
136
|
|
|
|
|
|
(Continued)
- 60 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2016
|
|
|
Note
|
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Agency bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fnma Pool AC8517
|
|
—
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
US$
|
116
|
|
|
|
N/A
|
|
|
US$
|
116
|
|
|
|
|
|
|
|
|
Fnma Pool AS7124
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
115
|
|
|
|
N/A
|
|
|
US$
|
115
|
|
|
|
|
|
|
|
|
Fnma Pool 745418
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
114
|
|
|
|
N/A
|
|
|
US$
|
114
|
|
|
|
|
|
|
|
|
Fnma Pool 889455
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
77
|
|
|
|
N/A
|
|
|
US$
|
77
|
|
|
|
|
|
|
|
|
Fnma Pool 995018
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
73
|
|
|
|
N/A
|
|
|
US$
|
73
|
|
|
|
|
|
|
|
|
Fnma Pool 831811
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
60
|
|
|
|
N/A
|
|
|
US$
|
60
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool 849506
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
42
|
|
|
|
N/A
|
|
|
US$
|
42
|
|
|
|
|
|
|
|
|
Fnma Pool 954940
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
41
|
|
|
|
N/A
|
|
|
US$
|
41
|
|
|
|
|
|
|
|
|
Fnma Pool AL6964
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
30
|
|
|
|
N/A
|
|
|
US$
|
30
|
|
|
|
|
|
|
|
|
Fnma Pool AB0109
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
28
|
|
|
|
N/A
|
|
|
US$
|
28
|
|
|
|
|
|
|
|
|
Fnma Pool AC8444
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
26
|
|
|
|
N/A
|
|
|
US$
|
26
|
|
|
|
|
|
|
|
|
Fnma Pool 745516
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
23
|
|
|
|
N/A
|
|
|
US$
|
23
|
|
|
|
|
|
|
|
|
Fnma Pool 890071
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
23
|
|
|
|
N/A
|
|
|
US$
|
23
|
|
|
|
|
|
|
|
|
Fnma Pool 535994
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
22
|
|
|
|
N/A
|
|
|
US$
|
22
|
|
|
|
|
|
|
|
|
Fed Hm Ln Pc Pool C91876
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
20
|
|
|
|
N/A
|
|
|
US$
|
20
|
|
|
|
|
|
|
|
|
Fnma Pool AE0616
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
19
|
|
|
|
N/A
|
|
|
US$
|
19
|
|
|
|
|
|
|
|
|
Fnma Pool 323692
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
16
|
|
|
|
N/A
|
|
|
US$
|
16
|
|
|
|
|
|
|
|
|
Fnma Pool 725773
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
13
|
|
|
|
N/A
|
|
|
US$
|
13
|
|
|
|
|
|
|
|
|
Fnma Pool 735141
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
11
|
|
|
|
N/A
|
|
|
US$
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Negotiable certificate of deposit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of China
|
|
—
|
|
Held-to-maturity financial assets
|
|
|
—
|
|
|
US$
|
50,000
|
|
|
|
N/A
|
|
|
US$
|
50,176
|
|
|
|
|
|
|
|
|
China Development Bank
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
50,000
|
|
|
|
N/A
|
|
|
US$
|
50,209
|
|
|
|
|
|
|
|
|
China Construction Bank
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
50,000
|
|
|
|
N/A
|
|
|
US$
|
49,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate issued asset-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Citibank Credit Card Issuance Trust
|
|
—
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
US$
|
21,062
|
|
|
|
N/A
|
|
|
US$
|
21,062
|
|
|
|
|
|
|
|
|
Chase Issuance Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
20,809
|
|
|
|
N/A
|
|
|
US$
|
20,809
|
|
|
|
|
|
|
|
|
Capital One Multi Asset Execution Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
20,195
|
|
|
|
N/A
|
|
|
US$
|
20,195
|
|
|
|
|
|
|
|
|
Discover Card Execution Note Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
16,549
|
|
|
|
N/A
|
|
|
US$
|
16,549
|
|
|
|
|
|
|
|
|
Bank of America Credit Card Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
10,448
|
|
|
|
N/A
|
|
|
US$
|
10,448
|
|
|
|
|
|
|
|
|
American Express Credit Account Master Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
7,783
|
|
|
|
N/A
|
|
|
US$
|
7,783
|
|
|
|
|
|
|
|
|
Ford Credit Floorplan Master Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
7,359
|
|
|
|
N/A
|
|
|
US$
|
7,359
|
|
|
|
|
|
|
|
|
Mercedes Benz Master Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
5,990
|
|
|
|
N/A
|
|
|
US$
|
5,990
|
|
|
|
|
|
|
|
|
Chesapeake Funding II LLC
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
5,782
|
|
|
|
N/A
|
|
|
US$
|
5,782
|
|
|
|
|
|
|
|
|
Ford Credit Auto Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
4,768
|
|
|
|
N/A
|
|
|
US$
|
4,768
|
|
|
|
|
|
|
|
|
Morgan Stanley Capital I Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
4,069
|
|
|
|
N/A
|
|
|
US$
|
4,069
|
|
|
|
|
|
|
|
|
American Express Credit Account Master Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
4,006
|
|
|
|
N/A
|
|
|
US$
|
4,006
|
|
|
|
|
|
|
|
|
American Express Credit Account Master Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
3,997
|
|
|
|
N/A
|
|
|
US$
|
3,997
|
|
|
|
|
|
|
|
|
GS Mortgage Securities Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
3,170
|
|
|
|
N/A
|
|
|
US$
|
3,170
|
|
|
|
|
|
|
|
|
Hyundai Auto Receivables Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,849
|
|
|
|
N/A
|
|
|
US$
|
2,849
|
|
|
|
|
|
|
|
|
Mercedes Benz Auto Lease Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,692
|
|
|
|
N/A
|
|
|
US$
|
2,692
|
|
|
|
|
|
|
|
|
Toyota Auto Receivables Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,495
|
|
|
|
N/A
|
|
|
US$
|
2,495
|
|
|
|
|
|
|
|
|
BMW Floorplan Master Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,437
|
|
|
|
N/A
|
|
|
US$
|
2,437
|
|
|
|
|
|
|
|
|
Nissan Auto Receivables Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,387
|
|
|
|
N/A
|
|
|
US$
|
2,387
|
|
|
|
|
|
|
|
|
Carmax Auto Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,018
|
|
|
|
N/A
|
|
|
US$
|
2,018
|
|
|
|
|
|
|
|
|
Nissan Auto Receivables Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,011
|
|
|
|
N/A
|
|
|
US$
|
2,011
|
|
|
|
|
|
|
|
|
BMW Vehicle Lease Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,004
|
|
|
|
N/A
|
|
|
US$
|
2,004
|
|
|
|
|
|
|
|
|
Ford Credit Auto Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,003
|
|
|
|
N/A
|
|
|
US$
|
2,003
|
|
|
|
|
|
|
|
|
Toyota Auto Receivables Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,002
|
|
|
|
N/A
|
|
|
US$
|
2,002
|
|
|
|
|
|
|
|
|
Nissan Auto Receivables Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,002
|
|
|
|
N/A
|
|
|
US$
|
2,002
|
|
|
|
|
|
|
|
|
Hyundai Auto Lease Securitization Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
2,002
|
|
|
|
N/A
|
|
|
US$
|
2,002
|
|
|
|
|
|
(Continued)
- 61 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2016
|
|
|
Note
|
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Corporate issued asset-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USAA Auto Owner Trust
|
|
—
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
US$
|
2,000
|
|
|
|
N/A
|
|
|
US$
|
2,000
|
|
|
|
|
|
|
|
|
Mercedes Benz Auto Lease Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,999
|
|
|
|
N/A
|
|
|
US$
|
1,999
|
|
|
|
|
|
|
|
|
Nissan Master Owner Trust Receivables Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,997
|
|
|
|
N/A
|
|
|
US$
|
1,997
|
|
|
|
|
|
|
|
|
Nissan Auto Lease Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,904
|
|
|
|
N/A
|
|
|
US$
|
1,904
|
|
|
|
|
|
|
|
|
Golden Credit Card Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,804
|
|
|
|
N/A
|
|
|
US$
|
1,804
|
|
|
|
|
|
|
|
|
Mercedes Benz Auto Receivables Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,709
|
|
|
|
N/A
|
|
|
US$
|
1,709
|
|
|
|
|
|
|
|
|
Honda Auto Receivables Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,706
|
|
|
|
N/A
|
|
|
US$
|
1,706
|
|
|
|
|
|
|
|
|
Toyota Auto Receivables Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,561
|
|
|
|
N/A
|
|
|
US$
|
1,561
|
|
|
|
|
|
|
|
|
Hyundai Auto Lease Securitization Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,347
|
|
|
|
N/A
|
|
|
US$
|
1,347
|
|
|
|
|
|
|
|
|
Toyota Auto Receivables Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,148
|
|
|
|
N/A
|
|
|
US$
|
1,148
|
|
|
|
|
|
|
|
|
CFCRE Commercial Mortgage Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,119
|
|
|
|
N/A
|
|
|
US$
|
1,119
|
|
|
|
|
|
|
|
|
Ford Credit Auto Lease Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,113
|
|
|
|
N/A
|
|
|
US$
|
1,113
|
|
|
|
|
|
|
|
|
Hyundai Auto Receivables Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,010
|
|
|
|
N/A
|
|
|
US$
|
1,010
|
|
|
|
|
|
|
|
|
Nissan Auto Lease Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
1,002
|
|
|
|
N/A
|
|
|
US$
|
1,002
|
|
|
|
|
|
|
|
|
Ford Credit Auto Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
935
|
|
|
|
N/A
|
|
|
US$
|
935
|
|
|
|
|
|
|
|
|
Honda Auto Receivables Owner Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
917
|
|
|
|
N/A
|
|
|
US$
|
917
|
|
|
|
|
|
|
|
|
Nissan Auto Lease Trust
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
605
|
|
|
|
N/A
|
|
|
US$
|
605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primavera Capital Fund II L.P.
|
|
—
|
|
Financial assets carried at cost
|
|
|
—
|
|
|
US$
|
16,014
|
|
|
|
4
|
|
|
US$
|
16,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldman Sachs US$ Liquid Reserves Fund
|
|
—
|
|
Available-for-sale financial assets
|
|
|
189,831
|
|
|
US$
|
189,831
|
|
|
|
N/A
|
|
|
US$
|
189,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VTAF III
|
|
Common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accton Wireless Broadband Corp.
|
|
—
|
|
Financial assets carried at cost
|
|
|
2,249
|
|
|
US$
|
315
|
|
|
|
6
|
|
|
US$
|
315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BridgeLux, Inc.
|
|
—
|
|
Financial assets carried at cost
|
|
|
7,522
|
|
|
US$
|
4,235
|
|
|
|
3
|
|
|
US$
|
4,235
|
|
|
|
|
|
|
|
|
GTBF, Inc.
|
|
—
|
|
”
|
|
|
1,154
|
|
|
US$
|
1,500
|
|
|
|
N/A
|
|
|
US$
|
1,500
|
|
|
|
|
|
|
|
|
LiquidLeds Lighting Corp.
|
|
—
|
|
”
|
|
|
1,600
|
|
|
US$
|
800
|
|
|
|
11
|
|
|
US$
|
800
|
|
|
|
|
|
|
|
|
Neoconix, Inc.
|
|
—
|
|
”
|
|
|
4,147
|
|
|
US$
|
170
|
|
|
|
—
|
|
|
US$
|
170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VTAF II
|
|
Common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RichWave Technology Corp.
|
|
—
|
|
Available-for-sale financial assets
|
|
|
1,267
|
|
|
US$
|
2,814
|
|
|
|
3
|
|
|
US$
|
2,814
|
|
|
|
|
|
|
|
|
Sentelic
|
|
—
|
|
Financial assets carried at cost
|
|
|
1,806
|
|
|
US$
|
2,607
|
|
|
|
8
|
|
|
US$
|
2,607
|
|
|
|
|
|
|
|
|
Aether Systems, Inc.
|
|
—
|
|
”
|
|
|
3,100
|
|
|
US$
|
2,429
|
|
|
|
30
|
|
|
US$
|
2,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aquantia
|
|
—
|
|
Financial assets carried at cost
|
|
|
4,643
|
|
|
US$
|
4,441
|
|
|
|
2
|
|
|
US$
|
4,441
|
|
|
|
|
|
|
|
|
5V Technologies, Inc.
|
|
—
|
|
”
|
|
|
963
|
|
|
US$
|
2,168
|
|
|
|
2
|
|
|
US$
|
2,168
|
|
|
|
|
|
|
|
|
Impinj, Inc.
|
|
—
|
|
”
|
|
|
711
|
|
|
US$
|
1,100
|
|
|
|
—
|
|
|
US$
|
1,100
|
|
|
|
|
|
|
|
|
QST Holdings, LLC
|
|
—
|
|
”
|
|
|
—
|
|
|
US$
|
588
|
|
|
|
13
|
|
|
US$
|
588
|
|
|
|
|
|
|
|
|
Cresta Technology Corporation
|
|
—
|
|
”
|
|
|
92
|
|
|
US$
|
28
|
|
|
|
—
|
|
|
US$
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ISDF
|
|
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonics, Inc.
|
|
—
|
|
Financial assets carried at cost
|
|
|
230
|
|
|
|
—
|
|
|
|
3
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ISDF II
|
|
Common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alchip Technologies Limited
|
|
—
|
|
Available-for-sale financial assets
|
|
|
6,581
|
|
|
US$
|
4,974
|
|
|
|
11
|
|
|
US$
|
4,974
|
|
|
|
|
|
|
|
|
Goyatek Technology, Corp.
|
|
—
|
|
Financial assets carried at cost
|
|
|
745
|
|
|
|
—
|
|
|
|
6
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Sonics, Inc.
|
|
—
|
|
”
|
|
|
278
|
|
|
|
—
|
|
|
|
4
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonics, Inc.
|
|
—
|
|
Financial assets carried at cost
|
|
|
264
|
|
|
|
—
|
|
|
|
4
|
|
|
|
—
|
|
|
|
|
|
(Concluded)
- 62 -
TABLE 4
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE SIX MONTHS ENDED JUNE 30, 2016
(Amounts in
Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Name
|
|
Marketable
Securities
Type and Name
|
|
Financial Statement
Account
|
|
Counter-party
|
|
|
Nature of
Relationship
|
|
|
Beginning Balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Ending Balance (Note 1)
|
|
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
Carrying
Value
|
|
|
Gain/Loss on
Disposal
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
Bank debentures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSBC Bank (Taiwan) Limited
|
|
Held-to-maturity financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
3,305,475
|
|
|
|
—
|
|
|
$
|
—
|
|
|
|
—
|
|
|
$
|
3,300,000
|
|
|
$
|
3,300,000
|
|
|
$
|
—
|
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPC Corporation, Taiwan
|
|
Held-to-maturity financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,543,723
|
|
|
|
—
|
|
|
|
1,513,743
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,050,535
|
|
|
|
|
Nan Ya Plastics Corporation
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
302,139
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
301,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structure deposit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cathay United Bank
|
|
Held-to-maturity financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,000,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,000,000
|
|
|
|
1,000,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taiwan Power Company
|
|
Held-to-maturity financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
80
|
|
|
|
798,708
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
80
|
|
|
|
798,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Nanjing
|
|
Investments accounted for using equity method
|
|
|
—
|
|
|
|
Subsidiary
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,630,700
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,603,461
|
|
|
|
|
TSMC Global
|
|
Prepayments for Investments (Note 2)
|
|
|
—
|
|
|
|
Subsidiary
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
35,207,621
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
35,207,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Corporate bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JPMorgan Chase & Co.
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
4,971
|
|
|
|
—
|
|
|
US$
|
13,494
|
|
|
|
—
|
|
|
US$
|
2,505
|
|
|
US$
|
2,505
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
16,152
|
|
|
|
|
US Bank NA Cincinnati
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
11,976
|
|
|
|
—
|
|
|
US$
|
7,513
|
|
|
US$
|
7,486
|
|
|
US$
|
27
|
|
|
|
—
|
|
|
US$
|
4,528
|
|
|
|
|
JPMorgan Chase & Co.
|
|
Held-to-maturity financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
10,798
|
|
|
|
—
|
|
|
US$
|
143,533
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
153,765
|
|
|
|
|
Wells Fargo & Company
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
150,008
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
150,007
|
|
|
|
|
Goldman Sachs Group, Inc.
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
100,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
100,000
|
|
|
|
|
Westpac Banking Corporation
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
100,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
100,000
|
|
|
|
|
Commonwealth Bank of Australia
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
50,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
50,000
|
|
|
|
|
National Australia Bank
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
50,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
50,000
|
|
|
|
|
Bank of Nova Scotia
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
49,978
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
49,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Treasury N/B
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
26,702
|
|
|
|
—
|
|
|
US$
|
43,762
|
|
|
|
—
|
|
|
US$
|
31,946
|
|
|
US$
|
31,915
|
|
|
US$
|
31
|
|
|
|
—
|
|
|
US$
|
38,908
|
|
|
|
|
US Treasury Floating Rate Note
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
39,304
|
|
|
|
—
|
|
|
US$
|
17,642
|
|
|
US$
|
17,631
|
|
|
US$
|
11
|
|
|
|
—
|
|
|
US$
|
21,667
|
|
|
|
|
Treasury Inflation-Indexed N/B
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
9,167
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
9,175
|
|
(Continued)
- 63 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Name
|
|
Marketable
Securities
Type and Name
|
|
Financial Statement
Account
|
|
Counter-party
|
|
|
Nature of
Relationship
|
|
|
Beginning Balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Ending Balance (Note 1)
|
|
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
Carrying
Value
|
|
|
Gain/Loss on
Disposal
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Agency bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fnma Pool AL7191
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
5,864
|
|
|
|
—
|
|
|
US$
|
9,855
|
|
|
|
—
|
|
|
US$
|
1,353
|
|
|
US$
|
1,542
|
|
|
US$
|
(189
|
)
|
|
|
—
|
|
|
US$
|
14,450
|
|
|
|
|
Fnma Pool 888577
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
—
|
|
|
|
—
|
|
|
US$
|
11,995
|
|
|
|
—
|
|
|
US$
|
924
|
|
|
US$
|
1,055
|
|
|
US$
|
(131
|
)
|
|
|
—
|
|
|
US$
|
10,949
|
|
|
|
|
Fnma Pool AV5062
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
—
|
|
|
|
—
|
|
|
US$
|
9,975
|
|
|
|
—
|
|
|
US$
|
391
|
|
|
US$
|
408
|
|
|
US$
|
(17
|
)
|
|
|
—
|
|
|
US$
|
9,641
|
|
|
|
|
Fnma Tba 15 Yr 2.5
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
3,964
|
|
|
|
—
|
|
|
US$
|
11,998
|
|
|
|
—
|
|
|
US$
|
16,006
|
|
|
US$
|
15,978
|
|
|
US$
|
28
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate issued asset-backed
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Citibank Credit Card Issuance Trust
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
9,756
|
|
|
|
—
|
|
|
US$
|
11,268
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
21,062
|
|
|
|
|
Chase Issuance Trust
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
15,507
|
|
|
|
—
|
|
|
US$
|
10,984
|
|
|
|
—
|
|
|
US$
|
5,744
|
|
|
US$
|
5,753
|
|
|
US$
|
(9
|
)
|
|
|
—
|
|
|
US$
|
20,809
|
|
|
|
|
Capital One Multi Asset Execution Trust
|
|
”
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
US$
|
8,961
|
|
|
|
—
|
|
|
US$
|
13,178
|
|
|
|
—
|
|
|
US$
|
1,999
|
|
|
US$
|
1,996
|
|
|
US$
|
3
|
|
|
|
—
|
|
|
US$
|
20,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldman Sachs US$ Liquid Reserves Fund
|
|
Available-for-sale financial assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
199,000
|
|
|
US$
|
199,000
|
|
|
|
9,169
|
|
|
US$
|
9,169
|
|
|
US$
|
9,169
|
|
|
|
—
|
|
|
|
189,831
|
|
|
US$
|
189,831
|
|
|
Note 1:
|
The ending balance includes the amortization of premium/discount on bonds investments, share of profits/losses of investees and other related adjustment.
|
|
Note 2:
|
To lower the hedging cost, in February 2016, the Board of Directors of TSMC approved to inject US$2,000,000 thousand of capital into TSMC Global. This project was approved by the Investment Commission, Ministry of
Economic Affairs, R.O.C. (MOEA). The prepayment for investment was US$1,081,200 thousand as of June 30, 2016 and the total injection is expected to be finished in the fourth quarter of 2016.
|
(Concluded)
- 64 -
TABLE 5
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
ACQUISITION OF INDIVIDUAL REAL ESTATE PROPERTIES AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE SIX MONTHS ENDED JUNE 30, 2016
(Amounts in
Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Name
|
|
Types of
Property
|
|
Transaction Date
|
|
Transaction
Amount
(Foreign
Currencies in
Thousands)
|
|
|
Payment Term
|
|
Counter-party
|
|
Nature of
Relationships
|
|
Prior Transaction of Related Counter-party
|
|
Price
Reference
|
|
Purpose of
Acquisition
|
|
Other
Terms
|
|
|
|
|
|
|
|
|
Owner
|
|
Relationships
|
|
Transfer Date
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
Fab
|
|
April 15, 2015 to February 17, 2016
|
|
$
|
362,111
|
|
|
Monthly settlement by the construction progress and acceptance
|
|
Environetics Design Group Co., Ltd.
|
|
—
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Bidding, price comparison and price negotiation
|
|
Manufacturing purpose
|
|
None
|
|
|
|
Fab
|
|
September 17, 2015 to January 25, 2016
|
|
|
3,201,800
|
|
|
Monthly settlement by the construction progress and acceptance
|
|
DA CIN Construction Co., Ltd.
|
|
—
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Bidding, price comparison and price negotiation
|
|
Manufacturing purpose
|
|
None
|
|
|
|
Fab
|
|
December 10, 2015 to April 11, 2016
|
|
|
3,167,768
|
|
|
Monthly settlement by the construction progress and acceptance
|
|
Fu Tsu Construction Co., Ltd.
|
|
—
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Bidding, price comparison and price negotiation
|
|
Manufacturing purpose
|
|
None
|
|
|
|
Fab
|
|
December 31, 2015 to January 04, 2016
|
|
|
1,250,000
|
|
|
Monthly settlement by the construction progress and acceptance
|
|
China Steel Structure Co., Ltd.
|
|
—
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Bidding, price comparison and price negotiation
|
|
Manufacturing purpose
|
|
None
|
|
|
|
Fab
|
|
January 22, 2016 to January 25, 2016
|
|
|
750,000
|
|
|
Monthly settlement by the construction progress and acceptance
|
|
KEDGE Construction Co., Ltd.
|
|
—
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Bidding, price comparison and price negotiation
|
|
Manufacturing purpose
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Nanjing Company Ltd.
|
|
Land use right
|
|
June 16, 2016
|
|
|
RMB160,521
|
|
|
100% payment
|
|
Nanjing Municipal Bureau of Land and Resources
|
|
—
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Bidding
|
|
Manufacturing purpose
|
|
None
|
- 65 -
TABLE 6
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE SIX MONTHS ENDED JUNE 30, 2016
(Amounts in
Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes/Accounts
Payable or
Receivable
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Details
|
|
|
|
Ending Balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
(Foreign Currencies
|
|
|
% to
|
|
|
|
|
Abnormal Transaction
|
|
(Foreign
Currencies in
|
|
|
% to
|
|
|
|
|
|
Company Name
|
|
Related Party
|
|
Nature of Relationships
|
|
Purchases/Sales
|
|
in Thousands)
|
|
|
Total
|
|
|
Payment Terms
|
|
Unit Price
|
|
Payment Terms
|
|
Thousands)
|
|
|
Total
|
|
|
Note
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
TSMC North America
|
|
Subsidiary
|
|
Sales
|
|
$
|
264,580,092
|
|
|
|
61
|
|
|
Net 30 days from invoice date (Note)
|
|
—
|
|
Note
|
|
$
|
69,202,508
|
|
|
|
63
|
|
|
|
|
|
|
|
|
GUC
|
|
Associate
|
|
Sales
|
|
|
2,035,267
|
|
|
|
—
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
—
|
|
—
|
|
|
391,735
|
|
|
|
—
|
|
|
|
|
|
|
|
|
TSMC China
|
|
Subsidiary
|
|
Purchases
|
|
|
8,451,002
|
|
|
|
26
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
—
|
|
—
|
|
|
(1,632,878
|
)
|
|
|
6
|
|
|
|
|
|
|
|
|
WaferTech
|
|
Indirect subsidiary
|
|
Purchases
|
|
|
4,437,485
|
|
|
|
14
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
—
|
|
—
|
|
|
(1,502,761
|
)
|
|
|
6
|
|
|
|
|
|
|
|
|
VIS
|
|
Associate
|
|
Purchases
|
|
|
3,307,255
|
|
|
|
10
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
—
|
|
—
|
|
|
(485,679
|
)
|
|
|
2
|
|
|
|
|
|
|
|
|
SSMC
|
|
Associate
|
|
Purchases
|
|
|
1,479,784
|
|
|
|
5
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
—
|
|
—
|
|
|
(257,953
|
)
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC North America
|
|
GUC
|
|
Associate of TSMC
|
|
Sales
|
|
(US$
|
481,225
14,682
|
)
|
|
|
—
|
|
|
Net 30 days from invoice date
|
|
—
|
|
—
|
|
(US$
|
32,229
998
|
)
|
|
|
—
|
|
|
|
|
|
|
Note:
|
The tenor is 30 days from TSMC’s invoice date or determined by the payment terms granted to its clients by TSMC North America.
|
- 66 -
TABLE 7
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
June 30, 2016
(Amounts in Thousands of New Taiwan
Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Name
|
|
Related Party
|
|
Nature of Relationships
|
|
Ending Balance
(Foreign Currencies
in Thousands)
|
|
|
Turnover Days
(Note 1)
|
|
Overdue
|
|
Amounts Received
in Subsequent
Period
|
|
|
Allowance for
Bad Debts
|
|
|
|
|
|
|
|
Amount
|
|
|
Action Taken
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
TSMC North America
|
|
Subsidiary
|
|
$
|
70,386,041
|
|
|
43
|
|
$
|
3,026,539
|
|
|
—
|
|
$
|
4,085,293
|
|
|
$
|
—
|
|
|
|
|
VIS
|
|
Associate
|
|
|
1,296,830
|
|
|
Note 2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
|
|
GUC
|
|
Associate
|
|
|
531,798
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC China
|
|
TSMC
|
|
Parent company
|
|
(RMB
|
1,632,878
331,576)
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Technology
|
|
TSMC
|
|
Parent company
|
|
(US$
|
266,530
8,256
|
)
|
|
Note 2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
WaferTech
|
|
TSMC
|
|
Parent company
|
|
(US$
|
1,502,761
46,550
|
)
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
Note 1:
|
The calculation of turnover days excludes other receivables from related parties.
|
|
Note 2:
|
The ending balance is primarily consisted of other receivables, which is not applicable for the calculation of turnover days.
|
- 67 -
TABLE 8
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
FOR SIX MONTH ENDED JUNE 30, 2016
INTERCOMPANY
RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No.
|
|
Company Name
|
|
Counter Party
|
|
Nature of
Relationship
(Note 1)
|
|
Intercompany Transactions
|
|
|
|
|
|
Financial Statements Item
|
|
Amount
|
|
|
Terms
(Note 2)
|
|
Percentage of
Consolidated Net Revenue
or Total Assets
|
|
|
|
|
|
|
|
|
|
|
0
|
|
TSMC
|
|
TSMC North America
|
|
1
|
|
Net revenue from sale of goods
|
|
$
|
264,580,092
|
|
|
—
|
|
62%
|
|
|
|
|
|
|
|
|
|
Receivables from related parties
|
|
|
69,202,508
|
|
|
—
|
|
4%
|
|
|
|
|
|
|
|
|
|
Other receivables from related parties
|
|
|
1,183,533
|
|
|
—
|
|
—
|
|
|
|
|
|
TSMC Japan
|
|
1
|
|
Marketing expenses - commission
|
|
|
144,035
|
|
|
—
|
|
—
|
|
|
|
|
|
TSMC Europe
|
|
1
|
|
Marketing expenses - commission
|
|
|
223,879
|
|
|
—
|
|
—
|
|
|
|
|
|
TSMC China
|
|
1
|
|
Purchases
|
|
|
8,451,002
|
|
|
—
|
|
2%
|
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
|
1,632,878
|
|
|
—
|
|
—
|
|
|
|
|
|
TSMC Canada
|
|
1
|
|
Research and development expenses
|
|
|
121,789
|
|
|
—
|
|
—
|
|
|
|
|
|
TSMC Technology
|
|
1
|
|
Research and development expenses
|
|
|
925,244
|
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
|
266,530
|
|
|
—
|
|
—
|
|
|
|
|
|
WaferTech
|
|
1
|
|
Purchases
|
|
|
4,437,485
|
|
|
—
|
|
1%
|
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
|
1,502,761
|
|
|
—
|
|
—
|
|
1
|
|
TSMC China
|
|
TSMC Nanjing
|
|
3
|
|
Other receivables from related parties
|
|
|
1,700,825
|
|
|
—
|
|
—
|
|
2
|
|
VisEra Holding
|
|
VisEra Tech
|
|
3
|
|
Other payables to related parties
|
|
|
759,360
|
|
|
—
|
|
—
|
|
Note 1:
|
No. 1 represents the transactions from parent company to subsidiary.
|
|
|
No. 3 represents the transactions between subsidiaries.
|
|
Note 2:
|
The sales prices and payment terms of intercompany sales are not significantly different from those to third parties. For other intercompany transactions, prices and terms are determined in accordance with mutual
agreements.
|
- 68 -
TABLE 9
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN
MAINLAND CHINA)
FOR SIX MONTH ENDED JUNE 30, 2016
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor
Company
|
|
Investee
Company
|
|
Location
|
|
Main Businesses
and Products
|
|
Original Investment Amount
|
|
|
Balance as of June 30, 2016
|
|
|
Net Income
|
|
|
Share of
Profits/Losses
|
|
|
Note
|
|
|
|
|
|
June 30,
2016
(Foreign
Currencies in
Thousands)
|
|
|
December 31,
2015
(Foreign
Currencies in
Thousands)
|
|
|
Shares (In
Thousands)
|
|
|
Percentage of
Ownership
|
|
Carrying
Value
(Foreign
Currencies in
Thousands)
|
|
|
(Losses) of the
Investee
(Foreign
Currencies in
Thousands)
|
|
|
of Investee
(Note 1)
(Foreign
Currencies in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
TSMC Global
|
|
Tortola, British Virgin Islands
|
|
Investment activities
|
|
$
|
202,962,857
|
|
|
$
|
167,755,236
|
|
|
|
5
|
|
|
100
|
|
$
|
235,940,202
|
|
|
$
|
1,136,615
|
|
|
$
|
1,136,615
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
|
|
Note 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Partners
|
|
Tortola, British Virgin Islands
|
|
Investing in companies involved in the design, manufacture, and other related business in the
semiconductor industry
|
|
|
31,456,130
|
|
|
|
31,456,130
|
|
|
|
988,268
|
|
|
100
|
|
|
51,108,735
|
|
|
|
1,170,601
|
|
|
|
1,170,601
|
|
|
Subsidiary
|
|
|
|
SSMC
|
|
Singapore
|
|
Fabrication and supply of integrated circuits
|
|
|
5,120,028
|
|
|
|
5,120,028
|
|
|
|
314
|
|
|
39
|
|
|
10,154,793
|
|
|
|
2,135,710
|
|
|
|
828,442
|
|
|
Associate
|
|
|
|
VIS
|
|
Hsin-Chu, Taiwan
|
|
Research, design, development, manufacture, packaging, testing and sale of memory integrated
circuits, LSI, VLSI and related parts
|
|
|
10,180,677
|
|
|
|
10,180,677
|
|
|
|
464,223
|
|
|
28
|
|
|
8,068,620
|
|
|
|
2,869,519
|
|
|
|
810,201
|
|
|
Associate
|
|
|
|
TSMC North America
|
|
San Jose, California, U.S.A
|
|
Selling and marketing of integrated circuits and semiconductor devices
|
|
|
333,718
|
|
|
|
333,718
|
|
|
|
11,000
|
|
|
100
|
|
|
4,235,511
|
|
|
|
80,826
|
|
|
|
80,826
|
|
|
Subsidiary
|
|
|
|
Xintec
|
|
Taoyuan, Taiwan
|
|
Wafer level chip size packaging service
|
|
|
1,309,969
|
|
|
|
1,309,969
|
|
|
|
92,778
|
|
|
35
|
|
|
2,089,346
|
|
|
|
(217,146
|
)
|
|
|
(74,738
|
)
|
|
Associate
|
|
|
|
GUC
|
|
Hsin-Chu, Taiwan
|
|
Researching, developing, manufacturing, testing and marketing of integrated circuits
|
|
|
386,568
|
|
|
|
386,568
|
|
|
|
46,688
|
|
|
35
|
|
|
1,063,883
|
|
|
|
260,622
|
|
|
|
91,170
|
|
|
Associate
|
|
|
|
VTAF II
|
|
Cayman Islands
|
|
Investing in new start-up technology companies
|
|
|
608,562
|
|
|
|
608,562
|
|
|
|
—
|
|
|
98
|
|
|
533,531
|
|
|
|
1,533
|
|
|
|
1,503
|
|
|
Subsidiary
|
|
|
|
Chi Cherng
|
|
Taipei, Taiwan
|
|
Investment activities
|
|
|
394,674
|
|
|
|
394,674
|
|
|
|
36,600
|
|
|
100
|
|
|
395,068
|
|
|
|
704
|
|
|
|
704
|
|
|
Subsidiary
|
|
|
|
VTAF III
|
|
Cayman Islands
|
|
Investing in new start-up technology companies
|
|
|
1,499,452
|
|
|
|
1,499,452
|
|
|
|
—
|
|
|
98
|
|
|
351,190
|
|
|
|
(28,978
|
)
|
|
|
(28,399
|
)
|
|
Subsidiary
|
|
|
|
TSMC Europe
|
|
Amsterdam, the Netherlands
|
|
Marketing and engineering supporting activities
|
|
|
15,749
|
|
|
|
15,749
|
|
|
|
—
|
|
|
100
|
|
|
349,104
|
|
|
|
19,916
|
|
|
|
19,916
|
|
|
Subsidiary
|
|
|
|
TSMC Japan
|
|
Yokohama, Japan
|
|
Marketing activities
|
|
|
83,760
|
|
|
|
83,760
|
|
|
|
6
|
|
|
100
|
|
|
150,090
|
|
|
|
3,702
|
|
|
|
3,702
|
|
|
Subsidiary
|
|
|
|
TSMC Korea
|
|
Seoul, Korea
|
|
Customer service and technical supporting activities
|
|
|
13,656
|
|
|
|
13,656
|
|
|
|
80
|
|
|
100
|
|
|
36,777
|
|
|
|
1,410
|
|
|
|
1,410
|
|
|
Subsidiary
|
|
|
|
VTA Holdings
|
|
Delaware, U.S.A
|
|
Investing in new start-up technology companies
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Subsidiary
|
|
|
|
Emerging Alliance
|
|
Cayman Islands
|
|
Investing in new start-up technology companies
|
|
|
—
|
|
|
|
844,775
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(313
|
)
|
|
|
(311
|
)
|
|
Subsidiary
|
|
|
|
TSMC Solar Europe GmbH
|
|
Hamburg, Germany
|
|
Selling of solar related products and providing customer service
|
|
|
25,266
|
|
|
|
25,266
|
|
|
|
1
|
|
|
100
|
|
|
(4,430
|
)
|
|
|
(5,747
|
)
|
|
|
(5,747
|
)
|
|
Subsidiary
|
|
|
|
Motech
|
|
New Taipei, Taiwan
|
|
Manufacturing and sales of solar cells, crystalline silicon solar cell, and test and measurement
instruments and design and construction of solar power systems
|
|
|
Note 4
|
|
|
|
5,221,931
|
|
|
|
Note 4
|
|
|
Note 4
|
|
|
Note 4
|
|
|
|
Note 4
|
|
|
|
93,030
|
|
|
Note 4
|
(Continued)
- 69 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor
Company
|
|
Investee
Company
|
|
Location
|
|
Main Businesses
and Products
|
|
Original Investment Amount
|
|
|
Balance as of June 30, 2016
|
|
|
Net Income
|
|
|
Share of
Profits/Losses
|
|
|
Note
|
|
|
|
|
|
June 30,
2016
(Foreign
Currencies in
Thousands)
|
|
|
December 31,
2015
(Foreign
Currencies in
Thousands)
|
|
|
Shares (In
Thousands)
|
|
|
Percentage of
Ownership
|
|
Carrying
Value
(Foreign
Currencies in
Thousands)
|
|
|
(Losses) of the
Investee
(Foreign
Currencies in
Thousands)
|
|
|
of Investee
(Note 1)
(Foreign
Currencies in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Partners
|
|
TSMC Development
|
|
Delaware, U.S.A
|
|
Investment activities
|
|
|
0.03
|
|
|
|
0.03
|
|
|
|
—
|
|
|
100
|
|
|
26,521,288
|
|
|
|
962,584
|
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
(US$
|
0.001
|
)
|
|
(US$
|
0.001
|
)
|
|
|
|
|
|
|
|
(US$
|
821,525
|
)
|
|
(US$
|
29,369
|
)
|
|
|
|
|
|
|
|
|
|
VisEra Holding
|
|
Cayman Islands
|
|
Investing in companies involved in the design, manufacturing, and other related businesses in
the semiconductor industry
|
|
(US$
|
4,881,332
151,204
|
)
|
|
(US$
|
4,881,332
151,204
|
)
|
|
|
86,000
|
|
|
98
|
|
(US$
|
7,083,239
219,411
|
)
|
|
(US$
|
90,633
2,765
|
)
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
TSMC Technology
|
|
Delaware, U.S.A
|
|
Engineering support activities
|
|
|
0.03
|
|
|
|
0.03
|
|
|
|
—
|
|
|
100
|
|
|
578,599
|
|
|
|
44,395
|
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
(US$
|
0.001
|
)
|
|
(US$
|
0.001
|
)
|
|
|
|
|
|
|
|
(US$
|
17,923
|
)
|
|
(US$
|
1,354
|
)
|
|
|
|
|
|
|
|
|
|
ISDF II
|
|
Cayman Islands
|
|
Investing in new start-up technology companies
|
|
(US$
|
300,200
9,299
|
)
|
|
(US$
|
300,200
9,299
|
)
|
|
|
9,299
|
|
|
97
|
|
(US$
|
290,900
9,011
|
)
|
|
(US$
|
2,745
84
|
)
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
TSMC Canada
|
|
Ontario, Canada
|
|
Engineering support activities
|
|
|
74,251
|
|
|
|
74,251
|
|
|
|
2,300
|
|
|
100
|
|
|
166,354
|
|
|
|
5,685
|
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
|
(US$
|
2,300
|
)
|
|
(US$
|
2,300
|
)
|
|
|
|
|
|
|
|
(US$
|
5,153
|
)
|
|
(US$
|
173
|
)
|
|
|
|
|
|
|
|
|
|
ISDF
|
|
Cayman Islands
|
|
Investing in new start-up technology companies
|
|
(US$
|
18,821
583
|
)
|
|
(US$
|
18,821
583
|
)
|
|
|
583
|
|
|
97
|
|
(US$
|
4,041
125
|
)
|
|
(US$
|
4
—
|
)
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VTAF III
|
|
Growth Fund
|
|
Cayman Islands
|
|
Investing in new start-up technology companies
|
|
(US$
|
47,190
1,462
|
)
|
|
(US$
|
47,190
1,462
|
)
|
|
|
—
|
|
|
100
|
|
(US$
|
30,224
936
|
)
|
|
(US$
|
4,632
141
|
)
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
Mutual-Pak
|
|
New Taipei, Taiwan
|
|
Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and
researching, developing and testing of RFID
|
|
(US$
|
168,281
5,212
|
)
|
|
(US$
|
168,281
5,212
|
)
|
|
|
15,643
|
|
|
58
|
|
(US$
|
18,432
571
|
)
|
|
(US$
|
(3,184
(97
|
)
))
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
VTA Holdings
|
|
Delaware, U.S.A
|
|
Investing in new start-up technology companies
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
|
—
|
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VTAF II
|
|
VTA Holdings
|
|
Delaware, U.S.A
|
|
Investing in new start-up technology companies
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
|
—
|
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Development
|
|
WaferTech
|
|
Washington, U.S.A
|
|
Manufacturing, selling, testing and computer-aided designing of integrated circuits and other
semiconductor devices
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
293,637
|
|
|
100
|
|
$
(US$
|
6,178,523
191,386
|
)
|
|
$
(US$
|
906,979
27,672)
|
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VisEra Holding
|
|
VisEra Tech
|
|
Hsin-Chu, Taiwan
|
|
Engaged in manufacturing electronic spare parts and in researching, developing, designing,
manufacturing, selling, packaging and testing of color filter
|
|
(US$
|
3,036,818
94,069
|
)
|
|
(US$
|
3,036,818
94,069
|
)
|
|
|
253,120
|
|
|
87
|
|
(US$
|
4,827,608
149,540
|
)
|
|
(US$
|
254,988
7,780
|
)
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
Xintec
|
|
Taoyuan, Taiwan
|
|
Wafer level chip size packaging service
|
|
(US$
|
196,375
6,083
|
)
|
|
(US$
|
196,375
6,083
|
)
|
|
|
18,504
|
|
|
6
|
|
(US$
|
687,990
21,311
|
)
|
|
(US$
|
(217,146
(6,625
|
)
))
|
|
|
Note 2
|
|
|
Associate
|
|
Note 1:
|
The share of profits/losses of investee includes the effect of unrealized gross profit on intercompany transactions.
|
|
Note 2:
|
The share of profits/losses of the investee company is not reflected herein as such amount is already included in the share of profits/losses of the investor company.
|
|
Note 3:
|
To lower the hedging cost, in February 2016, the Board of Directors of TSMC approved to inject US$2,000,000 thousand of capital into TSMC Global. This project was approved by the Investment Commission,
MOEA. The prepayment for investment was US$1,081,200 thousand as of June 30, 2016 and the total injection is expected to be finished in the fourth quarter of 2016.
|
|
Note 4:
|
The Company has no longer served as Motech’s board of director starting June 2016. As a result, the Company exercises no significant influence over Motech. Therefore, Motech is no longer accounted for using
the equity method.
|
(Concluded)
- 70 -
TABLE 10
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
INFORMATION ON INVESTMENT IN MAINLAND CHINA
FOR SIX
MONTH ENDED JUNE 30, 2016
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investee Company
|
|
Main Businesses and
Products
|
|
Total Amount of
Paid-in Capital
(RMB
in Thousands)
|
|
|
Method of
Investment
|
|
|
Accumulated
Outflow of
Investment from
Taiwan as of
January 1, 2016
(US$ in
Thousands)
|
|
|
Investment
Flows
|
|
|
Accumulated
Outflow of
Investment from
Taiwan as of
June 30,
2016 (US$ in
Thousands)
|
|
|
Net Income
(Losses) of the
Investee
Company
|
|
|
Percentage of
Ownership
|
|
Share of
Profits/Losses
|
|
|
Carrying
Amount
as of
June 30,
2016
|
|
|
Accumulated
Inward
Remittance of
Earnings as
of
June 30,
2016
|
|
|
|
|
|
|
|
Outflow
(US$ in
Thousands)
|
|
|
Inflow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC China
|
|
Manufacturing and selling of integrated circuits at the order of and pursuant to product design
specifications provided by customers
|
|
$
(RMB
|
18,939,667
4,502,080
|
)
|
|
|
Note 1
|
|
|
$
(US$
|
18,939,667
596,000
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
(US$
|
18,939,667
596,000
|
)
|
|
$
|
2,132,375
|
|
|
100%
|
|
$
|
1,990,114
(Note 2
|
)
|
|
$
|
40,532,453
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Nanjing
|
|
Manufacturing and selling of integrated circuits at the order of and pursuant to product design
specifications provided by customers
|
|
(RMB
|
1,630,700
328,975
|
)
|
|
|
Note 1
|
|
|
|
—
|
|
|
(US$
|
1,630,700
50,000
|
)
|
|
|
—
|
|
|
(US$
|
1,630,700
50,000
|
)
|
|
|
4,963
|
|
|
100%
|
|
|
4,963
(Note 2
|
)
|
|
|
1,603,461
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Investment in Mainland China
as of June 30, 2016
(US$ in Thousands)
|
|
|
Investment Amounts Authorized by
Investment Commission, MOEA
(US$ in Thousands)
|
|
|
Upper Limit on Investment
|
|
$
(US$
|
20,570,367
646,000
|
)
|
|
$
(US$
|
119,412,667
3,596,000
|
)
|
|
$
|
718,398,587
|
|
|
Note 1:
|
TSMC directly invested US$596,000 thousand in TSMC China and US$50,000 thousands in TSMC Nanjing.
|
|
Note 2:
|
Amount was recognized based on the reviewed financial statements.
|
- 71 -